DTN Before The Bell-Livestock

GENERAL COMMENTS

Mixed trade is expected to be seen in all markets early Wednesday morning. This could allow for additional market shifts to be seen later in the session, although the tone of the market remains uncertain. Corn markets are trading lower in light trade activity. The stock market is trading lower in light early trade. Dow Jones is 57 points lower while Nasdaq is down 15 points.

LIVE CATTLE:

Opening call: Mixed. Narrow trade ranges are expected to be seen through the entire morning in live cattle trade. There is likely to be additional market moves as traders focus on the direction of cash and beef values. Outside market moves will likely play a larger role in the direction of live cattle market moves over the next couple of days following the commercial and noncommercial interest in the complex through the last few sessions. Cash markets remain quiet early Wednesday morning, although bids are expected to redevelop through the morning in the same range as seen Tuesday. It is likely that bids may remain sluggish through the early part of the day as a wide gap between asking prices and bids remains. Active trade is likely to be delayed until sometime Thursday or Friday. Open interest Tuesday added 102 positions (338,722). Spot February liquidated 1,373 positions (19,476) and April contracts fell 338 positions (146,948). DTN projected slaughter for Wednesday is 114,000 head.

FEEDER CATTLE:

Opening call: Mixed. Sluggish market moves are expected to be seen through much of the morning across the feeder cattle market. This could allow for additional prices pressure during the morning with traders squaring positions following Tuesday's gains. Stability in front-month futures are expected to be seen through the complex. Cash lean index for 2/3 is $127.03, down $0.21. Open interest fell Tuesday 323 position (48,737).

LEAN HOGS:

Opening call: Mixed. Light trade is expected to develop through the morning Wednesday as prices are slowly backing away from early week gains. Even though prices are expected to be mixed to mostly lower during much of the morning, the overall tone of the market remains sluggish with focus on firming fundamental support. Most traders are expected to be taking positions with this move lower. Cash bids are 50 cents lower to 50 cents higher with most bids steady to firm. Open interest Tuesday added 6,477 positions (232,342). Spot month February liquidated 2,001 positions (15,279) and April added 3,646 positions (103,656). Cash lean index for 2/3 is $70.95, up $0.65. DTN projected slaughter for Friday is 440,000 head. Saturday runs are expected at 153,000 head

Rick Kment can be reached at rick.kment@dtn.com

(SK)

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