DTN Before The Bell-Livestock
Hog Futures Jump Higher on Stronger Product News
Packer inquiry in cattle feeding count remains relatively guarded with just a few bids noted in the early going (i.e., $118 in parts of the South). Asking prices are around $125 in the South and $200 in the North. Significant trade volume may not surface until sometime Thursday or Friday. The cash hog trade has opened mostly steady bids. Currently, the corn trade is about a penny higher in light trade volume. The stock market is making history this morning with the Dow finally crossing the 20,000 threshold. The Dow is 119 points higher at this writing with the Nasdaq better by 38.
LIVE CATTLE:
The live trade continues to nurse a listless tone this morning with most contracts 10-42 lower through the opening hour of business. Spot Feb is now close to $3 below last week's cash market.
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It may be tough for the board to fall further away from the country trade without concrete evidence of bearish news. Open interest on Tuesday increased by 4,930 (349,402). Spot February liquidated by 1,625 (50,371) and April jumped by 3,245 (145,159). DTN projected slaughter for today is 113,000 head.
FEEDER CATTLE:
Feeder futures are mixed this morning, ranging from up 10 to off 32. Players here seem to be waiting for marching order from counterparts in the live futures market. Open interest on Tuesday increased by 304 (52,109). CME cash feeder Index for 01/23: 133.28, off .18.
LEAN HOGS:
Bulls seem to be coming back to life in the lean hog market, at least for the moment. Prices currently range from 20 to 167 higher with nearbys gaining on deferreds. The front-end is being supported by cash premiums, bull spreading interest, and Tuesday $2 surge is the pork carcass value. Open interest on Tuesday decreased 1,787 (215,168). Spot February liquidated by 1,543 (29,245) and April lost 1,000 (98,064). CME cash lean index for 0l/23: 67.23, up 0.18. DTN projected slaughter for today is 435,000 head.
John A. Harrington can be reached at john.harrington@dtn.com
(SK)
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