DTN Before The Bell-Livestock

GENERAL COMMENTS

Feedlot country remains in slow gear this morning with bids and asking prices slow to develop. A few bids of $116 have been reported in parts of Texas, but that's about it so far. Some steers and heifers have been priced around $122 in the South and $192-194 in the North. Cash hog bids are steady to $1 higher. Corn futures are trading a penny plus higher in the early going thanks to light buying interest and short covering. The stock market is trading higher through the opening hour with the Dow up 75 and the Nasdaq firm by 33.

LIVE CATTLE:

Live issues are modestly lower at this time, though spot Feb has caught some support. Traders continue to scratch heads over deep board discounts. We've certainly suffered technical damage so far this week, and really need to somehow reconnect with cash potential. Open interest on Tuesday decreased by 2,384 (350,351). Spot February liquidated by 2,312 (37,123) and April lost 1,451 (148,976). DTN projected slaughter for today is 112,000 head.

FEEDER CATTLE:

The action continues to be slow with traders warily watching counterparts in the live market. Open interest on Tuesday decreased by 115 (49,638). CME cash feeder Index for 01/30: 130.29, off 0.91.

LEAN HOGS:

Lean contracts are mixed so far today with nearby outperforming deferreds. Bull spreading is encouraged by improving fundamentals. Open interest on Tuesday surged by 4,340 (220,658). Spot February liquidated by 838 (22,755) and April added 1,405 (94,971). CME cash lean index for 0l/30: 65.89, up 1.45. 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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