DTN Before The Bell-Livestock

GENERAL COMMENTS

Outside markets are leaning bullish early Friday with Dow Jones futures up 46 points, the June U.S. dollar index down 0.12 and other commodities mixed.

LIVE CATTLE:

Open: 15 cents higher. April cattle are up 0.20 early Friday as much of the northwestern U.S. Plains contends with flooding conditions and the aftermath of Thursday's blizzard. Friday morning's weather map shows the precipitation moved eastward, but snow melt is still a concern. Cash cattle are expected steady to $1.00 lower Friday after few sales were reported Thursday. So far this week, choice boxed beef prices have shown a small gain, one factor that should help support cattle prices. Outside markets are mixed early Friday with the Dow Jones futures trading modestly higher and the U.S. dollar index modestly lower. Other commodities are mixed. Dow Jones estimated Friday's cattle slaughter at 111,000 after USDA pegged Thursday's slaughter at 99,000. Total open interest was up 2,043 to 434,060 on Thursday's higher trade. April contracts fell 6,133 to 88,328 and June increased 4,611 to 180,586.

FEEDER CATTLE:

Open: 25 cents lower. April feeder cattle are up $0.77 early, staying within the same sideways range prices have seen since November. Corn is a penny higher early Friday. The Feeder Cash index for March 13 is listed at $138.39, down $1.37 from a week ago. Total open interest decreased 110 to 54,591 on Thursday's higher prices.

LEAN HOGS:

Open: Steady. April hogs are up $1.82 early Friday, still benefitting from ongoing concerns of African swine fever in China and increased prospects for increased U.S. pork exports. Friday's higher early trade puts April hogs above their 100-day average for the first time since mid December and has likely been helped by noncommercial short-covering. Dow Jones projected Friday's hog slaughter at 453,000 after USDA estimated Thursday's slaughter at 460,000. The Lean Hog Index for March 13 was estimated at $54.13 up $2.38 from a week ago. Cash hog trade is expected steady to $1.00 higher early Friday and has also received helped from a gain of nearly $4.00 in this week's pork carcass price. Total open interest was up 4,376 to 272,129 on Thursday's higher trade. Open interest in the April contract fell 2,638 to 43,056 while June contracts increased 1,391 to 84,289.

Todd Hultman can be reached at Todd.Hultman@dtn.com

(BAS)

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