DTN Before The Bell-Livestock

GENERAL COMMENTS

Cattle country remains quiet this morning as buyers and sellers slowly scope out the territory. A few showlists in the South have been priced around $130-131. Market watchers will have their ears cocked for the FCE auction later this morning. Hoping to get some clues regarding the development of the broader cash trade later this week. Hog buyers have resumed procurement chores this morning with bids ranging from steady to $1 lower. Corn futures are generally 3 cents higher in the early going, perhaps supported a bit by early plant delays. The stock market is mixed so far this morning with the Dow off 8 and the Nasdaq better by 30.

LIVE CATTLE:

Live futures are definitely in the groove with the default setting on bullish. Prices are currently 30 to 97 higher, supported by follow-through buying, bull spreading, and appreciating carcass value. Open interest on Monday increased by 4,995 (409,097).

Spot April liquidated by 1,370 (12,049) and June jumped by 1,082 (188,541). DTN projected slaughter for today is 115,000 head.

FEEDER CATTLE:

With the exception of spot April (off 20 at this time), most feeder issues are moderately higher in slow trading. Feeders may be overbought and the board is certainly port a big premium over the cash index. Open interest on Monday increased by 61 (60,183). CME cash feeder Index for 04/17: 136.61, up .49.

LEAN HOGS:

Lean futures are sharply lower near midmorning with tripl- digit losses dominating the first six contracts. Given such a large round of long liquidation, it would seem some are growing tired waiting for better fundamentals to develop. Open interest on Monday surged by 7,981 (214,782). Spot May liquidated by 26 (1,663) and June jumped 1,801 (87,650). Cash lean index 04/17: 62.12, off 0.47. DTN projected slaughter for today is 444,000 head.

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

(SK)

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