DTN Before The Bell-Livestock

GENERAL COMMENTS

Livestock futures are mixed in light trade activity as trader volume is expected to increase through the rest of the day. Adjustments ahead of the cattle on feed report Friday afternoon are expected in live cattle and feeder cattle markets. Corn markets are trading lower in light trade activity. The stock market is trading higher in light early trade. Dow Jones is 29 points higher while Nasdaq is up 28 points.

LIVE CATTLE:

Opening call: Mixed. Narrow gains have slowly trickled into live cattle futures during initial trade with the focus on additional market support seen across the complex. Additional trade is expected to develop though the rest of the session ahead of the cattle on feed report and development of cash cattle trade through the rest of the week. Cash cattle markets are quiet early Friday morning, although it is expected that additional activity will be seen as the day progresses. This could be a week where active trade is delayed until after the cattle on feed report is released Friday afternoon. Asking prices are seen at $132 and higher in the South and $217 and higher in the North. Open interest Thursday added 4,375 positions (379,526). Spot April liquidated 4,023 positions (51,210) and June contracts added 4,561 positions (169,618). DTN projected slaughter for Friday is 1150,000 head.

FEEDER CATTLE:

Opening call: Mixed. Lackluster activity seen through the complex is expected to continue to develop across the market as traders are looking for increased trade ahead of the cattle on feed report. Not only will the overall cattle placement be focused on, but potential adjustments may be needed to account for leap year last year which helps to explain the larger placements in 2016. Narrow gains are holding in nearby contracts, while follow through pressure is seen in deferred contract months. Cash lean index for 3/22 is $131.58, up $0.56. Open interest Thursday added 497 position (56,248).

LEAN HOGS:

Opening call: Mixed. Light trade is seen early Friday morning, and may keep overall market movement sluggish in most contracts. The strong market really seen across the complex Thursday helped to spark some additional buyer support back into the market even though active contract liquidation was seen in most contract months. Trade is seen from 20 cents lower to 20 cents higher as traders look for additional end of the week market direction. Cash bids are steady to $1 lower with bids 50 cents to $1 lower. Open interest Thursday fell 6,650 positions (209,580). Spot month April fell 6,490 positions (27,227) and June fell 1,031 positions (80,128). Cash lean index for 3/22 is $71.29, down $0.12. DTN projected slaughter for Friday is 410,000 head. Saturday runs are expected at 135,000 head.

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

(SK)

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