DTN Before The Bell-Livestock

Livestock Paper Trades Mixed in Early Morning Business

(DTN photo by Nick Scalise)
GENERAL COMMENTS

The cash cattle market is poorly defined this morning with neither buyers nor sellers in a hurry to show their hands. We have seen a few bids in the South and $123, but very little in terms of asking prices anywhere. Significant trade volume may not develop until sometime Thursday or Friday. The cash hog trade in the early rounds remains on the defensive with bids ranging from steady to $2 lower (mostly a buck lower). Corn futures are trading a dime plus higher, supported by buying in the soy complex and short covering. The stock market it lower as investors position ahead of Trump's speech before Congress tonight. The Dow is off 4 poingts with the Nasdaq in the red by 18.

LIVE CATTLE:

Live issues are well supported this morning, cheered on by positive late winter fundamentals and cash premiums. Spot Feb is scheduled to expire today at 12:00 p.m. (CDT). Open interest on Monday increased by 1,155 (328,352). Spot Feb liquidated by 930 (439) and April lost 383 (129,300). DTN projected slaughter for today is 113,000 head.

P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]

FEEDER CATTLE:

Feeders are mostly lower as of this writing as specs take some profits after Monday's surge forward. The discouraging targets of heavily discounted deferred live cattle futures remain a tough reality for would be feeder bulls to overlook. Open interest on Monday decreased by 829 (50,755). CME cash feeder Index for 02/24: 127.06, off .14.

LEAN HOGS:

Lean hog contracts are mixed near midmorning with nearbys losing ground to their deferred counterparts. News of further losses in the country seems to be working against the potential for April to amend its deep discount to the cash index (i.e., whicjh may continue to fall toward the board). Open interest on Monday decreased by 386 (220,515). Spot April liquidated by 640 (86,036) and June increased by 260 (54,566). Cash lean index 02/24: 76.72, off .67. DTN projected slaughter for today is 442,000 head.

John A. Harrington

(SK)

P[L2] D[728x90] M[320x50] OOP[F] ADUNIT[] T[]
P[R1] D[300x250] M[300x250] OOP[F] ADUNIT[] T[]
P[R2] D[300x250] M[320x50] OOP[F] ADUNIT[] T[]
DIM[1x3] LBL[] SEL[] IDX[] TMPL[standalone] T[]
P[R3] D[300x250] M[0x0] OOP[F] ADUNIT[] T[]