DTN Before The Bell-Livestock
Cattle Futures Trade Moderately Lower in Early Going
Feedlot country remains generally quiet this morning with just a few bids noted in parts of the South at $118-120. Asking prices are around $125 in the South and $200 in the North.
Significant trade volume may not surface until sometime Friday. The cash hog trade has opened mostly steady around the circuit. The corn trade is fractionally lower in the early rounds linked to follow-through selling and the general lack of constructive news.
The Dow is 26 points higher with the Nasdaq positive by 6.
LIVE CATTLE:
Live contracts are moderately lower through the first hour of trading. For some reason, the board continues to ignoring the recent strength of feedlot sales. Perhaps traders are anticipating either softening beef demand or larger fed numbers, maybe both. On the other hand, internet sales reported by the FCE yesterday were certainly positive. Open interest on Wednesday increased by 1,603 (350,982). Spot February liquidated by 2,370 (48,001) and April jumped by 2,279 (147,426). DTN projected slaughter for today is 115,000 head.
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
FEEDER CATTLE:
Following the defensive lead of live futures, feeder contracts are slumping moderately lower as of this writing. Note that spot Jan is scheduled to expire today, even though the cash index remains a dollar or more above current board quotes. Open interest on Wednesday increased by 580 (52,633). CME cash feeder Index for 01/24: 133.32, up 0.04.
LEAN HOGS:
Lean hog futures are mixed so far today with nearby issues gaining on the deferred counterparts. Feb and April are supported by residual buying interest left over from Wednesday's pop.
Additionally, the board seems to be attracting bull spreading activity. Open interest on Wednesday surged by 5,195 (220,357). Spot February liquidated by 1,123 (28,120) and April jumped 2,371 (95,431).
CME cash lean index for 0l/24: 67.76, up 0.53. DTN projected slaughter for today is 440,000 head.
John A. Harrington can be reached at john.harrington@dtn.com
(SK)
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