DTN Before The Bell-Livestock

GENERAL COMMENTS

Live and feeder futures are moderately higher this morning, supported by short covering and recent cash premiums. On the other hand, hog contracts are mostly lower in the early rounds, pressured by follow-through selling and long liquidation.

The cash cattle market remains untested this morning with bids and asking prices poorly defined. A few cattle in the South are priced around $132-133. Significant trade volume could be postponed until the second half of the week. Early action along the cash hog circuit continues to be generally defensive with bids ranging fro .50-$1 lower. The corn trade is several cents higher so far this morning, supported by light commercial buying and recent dollar weakness. The stock market is trading higher in the early going with the Dow up 38 points and the Nasdaq positive by 4.

LIVE CATTLE:

After a rough start on Monday, live contracts are trying to stage something of a recovery this morning. Prices opened some lower but than attracted short covering interest and spec buying. The fact that last week's 5-area steer average (i.e., $130.91) is nearly $9 over spot April should lend some support. Open interest on Monday increased by 1,349 (385,896). Spot April liquidated by 4,154 (43,733) and June jumped 2,751 (177,522). DTN projected slaughter for today is 114,000 head.

FEEDER CATTLE:

Feeders are moderately higher at this time as traders try to follow the same pattern of price recovery at least momentary on track in the live market. The premium of the cash index should also be helpful in that regard. Open interest on Monday increased by 38 (57,297). CME cash feeder Index for 03/24: 133.09, up .63.

LEAN HOGS:

For the most part, lean issues are moderately lower in early trading, through nearby contracts are holding up better than deferreds. With expiration about two week's away, spot April apparently still feels confident in anticipate substantial cash weakness still waiting in the wings (i.e., as much as $5). Open interest on Monday decreased by 488 (208,645). Spot April liquidated by 1,268 (23,849) and June added 296 (81,189). Cash lean index 03/24: 70.24, off .67. DTN projected slaughter for today is 442,000 head.

(SK)

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