DTN Before The Bell-Livestock

GENERAL COMMENTS

Cattle country is typically quiet this morning as packers set out to collect new showlists. We expected the new offering to be about steady to a little larger than last week. Hog buyers have resumed procurement chores this morning with bids ranging from steady to $1 lower. Corn futures are a penny plus lower in the early going, checked by timely spring rains. The stock market is off to a positive start with the Dow currently up 84 and the Nasdaq better by 25.

LIVE CATTLE:

Live issues are trading 12 to 70 higher as we move toward the completion of Monday's opening hour. Credit the support of impressive cash strength late last week and technical buying interest.

Note that spot April still remains at least $2 under feedlot cash.

Open interest on Thursday increased by 1,387 (399,170). Spot April liquidated by 1,958 (14,905) and June declined by 1,003 (185,193). DTN projected slaughter for today is 114,000 head.

FEEDER CATTLE:

At the same time, feeders are 32 to 115 higher, pushed on by commercial buying interest and growing feedlot equity. Not only are feeder steadily gaining on their live counterparts, the board has reasserted a large premium over the cash index.Open interest on Thursday increased by 982 (59,977). CME cash feeder Index for 04/12: 134.21, up 0.36.

LEAN HOGS:

Lean futures are modestly lower in the early going. It seems like both sides are reluctant to play, perhaps because each censes a seasonal shift in the wind, just as both cense that its not quite there.Open interest on Thursday decreased by 211 (205,115). Spot April liquidated by 250 (10,480) and June lost 695 (85,475). Cash lean index 04/12: 63.68, off 0.4948 DTN projected slaughter for today is 410,000 head.

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

(SK)

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