DTN Before The Bell-Livestock

GENERAL COMMENTS

Not much commotion in cattle feeding this morning.

While a few clean-up deals are entirely possible, we suspect business is essentially done for the week. Opening hog bids range from steady to .50 lower. The corn trade is about a penny lower so far this morning with little fresh news on the street. Equities are near flat in early trade with the Dow off 3 points and the Nasdaq down by 1.

LIVE CATTLE:

Live issues are moderately higher, supported by this week's impressive display of cash fundamentals. Yet prices could go back and forth through the session as specs and commercials position ahead of the April 1 on feed report due out this afternoon at 2:00 CDT. Open interest on Thursday increased by 1,185 (408,965). Spot April liquidated by 2,254(8,900) and June lost 1,227 (186,567). DTN projected slaughter for today is 113,000 head. Saturday's kill should come close to 25,000 head.

FEEDER CATTLE:

Feeders are answering firming in the live trade this morning with moderate price progress of their own. Perhaps the recent jump in the cash index of more than a buck is giving the board more confidence in building premiums. Open interest on Thursday decreased by 55 (60,591). CME cash feeder Index for 04/19: 137.65, up 1.01.

LEAN HOGS:

Lean futures are mixed in early business with summer contracts gaining ground on both spot May and the far deferreds.

Generally speaking, the tone here remains largely lackluster with traders uncertain as to whether or not supply and demand factors are on the verge of improvement. Open interest on Thursday decreased by 1,225 (209,507). Spot May added 106 (1,774) and June liquidated by 2,060 (85,869). Cash lean index 04/19: 61.59, off .30. DTN projected slaughter for today is 436,000 head. Saturday's kill could be as large as 215,000.

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

(SK)

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