DTN Before The Bell-Livestock

GENERAL COMMENTS

The cash cattle market remains untested this morning with some Northern bids noted around $200/$125. Some cattle are priced around $128-$130 in the South and $205-plus in the North. If traders want to conclude business prior to Good Friday, trade volume may increase later today. Early action along the cash hog circuit continues to be generally defensive with bids ranging from $0.50-$1 lower. The corn trade is generally 3 cents higher so far this morning, supported by reports of flooding in Argentina and spillover buying from soybeans. The stock market is trading modestly higher in the early going with both the Dow and Nasdaq positive by 14.

LIVE CATTLE:

Live futures open moderately lower, but seem to be slowly firming as we move toward midmorning. Profit-taking interest following the substantial rally seen through the first half of the week is certainly understandably. On the other hand, most contracts still remain far below the last established cash trade. Open interest on Monday increased by 3,594 (397,918). Spot April liquidated by 1,307 (16,863) and June added 565 (186,293). DTN projected slaughter for today is 114,000 head.

FEEDER CATTLE:

Feeders are mostly lower through the first hour of trading thanks to profit-taking and some technical adjustments. Keep in mind that feeders have marketed new contract highs for three consecutive sessions. Open interest on Monday decreased by 301 (58,995). CME cash feeder Index for 04/11: $133.85, up $0.21.

LEAN HOGS:

Lean issues are moderately lower in all contracts except soon-to-expire spot April (i.e., to go off the board on Monday). General erosion continues based on residual selling interest and defensive technical considerations. Seasonally, hog supplies should moderate as we move through the balance of the second quarter. Open interest on Monday 296 increased by 710 (205,469). Spot April liquidated by 535 (10,738) and June added 855 (86,170). Cash lean index 04/11: $64.16, off $0.49. DTN projected slaughter for today is 443,000 head.

John A. Harrington can be reached at john.harrington@dtn.com

(SK)

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