DTN Before The Bell-Livestock

GENERAL COMMENTS

Trade remains light to moderate in the early minutes of livestock trade Monday. The overall shift in the complex continues to be driven on a moderate pullback lead by nearby live cattle and feeder cattle trade. As additional volume moves into the market, prices could remain in a wide trading pattern through most of the morning. Hog futures are mixed in a narrow range with light activity expected through much of the day. Corn markets are trading higher in light trade activity. The stock market is trading mixed in light early trade. Dow Jones is 3 points higher while Nasdaq is down 2 points.

LIVE CATTLE:

Opening call: Steady to 80 cents lower. Widespread pressure is seen in cattle futures early Monday morning. The strong move higher, above $119 per cwt seen late last week is being trimmed as traders still focus on the potential that tight supplies may further support cash markets. But live cattle traders also see the current market relationship as limited and this could bring about moderate to firm pressure through the summer months. Cash cattle activity is expected to remain quiet through most of the day with inventory taking and show list distribution the main order of business in all areas. Open interest Friday added 3,604 positions (360,206). Spot April liquidated 2,264 positions (69,081) and June contracts added 3,178 positions (146,379). DTN projected slaughter for Monday is 114,000 head.

FEEDER CATTLE:

Opening call: Steady to 60 cents lower. Moderate pressure is quickly seen through feeder cattle futures as traders try to take positions following the aggressive market support seen over the last week. Trade remains light, but the potential for follow through selling activity during the entire Monday session could bring about additional uncertainty to the complex. Cash lean index for 3/14 is $127.61, up $0.19. Open interest Friday added 1,179 position (52,411).

LEAN HOGS:

Opening call: Mixed. Initial trade seen in lean hog futures remains extremely sluggish with prices hovering from 10 cents lower to 10 cents higher in nearby contracts. The inability to bring additional active buyer support back into the market after the recent market pressure may allow further but limited erosion in the complex. Trade volume is likely to remain extremely sluggish through the morning with the focus on additional pork market support. Cash bids are steady to $1 lower with most bids steady to 50 cents lower. Open interest Friday gained 735 positions (218,769). Spot month April fell 1,110 positions (39,966) and June added 981 positions (80,247). Cash lean index for 3/14 is $71.99, up $0.05. DTN projected slaughter for Monday is 440,000 head.

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

(SK)

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