DTN Before The Bell-Livestock

GENERAL COMMENTS

Cash cattle traders are sitting on their hands this morning, leaving both bids and asking prices poorly defined. Many producers and cattle caught in the path of the ugly late winter blizzard continue to work toward recovery. Other than the general presumption that showlists will eventually be priced higher (e.g., $142 plus in the South), we don't look for much definition from either side until the second half of the week. Opening hog bids range from steady to $1 higher. Corn futures are several cents lower in the early rounds, checked by profit taking and long liquidation. Equities are mixed so far this morning with the Dow up 7 points and the Nasdaq off 7.

LIVE CATTLE:

Live futures are moving substantially higher so far this morning, boosted by signs if solid seasonal beef demand and bull spreading interest. It seems like a good bet that the tough weekend blizzard (especially in parts of western Kansas and Nebraska) could further tighten already tight fed offerings. Open interest on Monday increased by 3,603 (431,836). New spot June liquidated by 3,131 (176,214) and August jumped 4,329 (106,521). DTN projected slaughter for today is 114,000 head.

FEEDER CATTLE:

Triple-digit gains dominate the feeder market in the early rounds with bull quickly reclaiming much of the price territory lost on Monday. Reports of higher feeder auction sales at Oklahoma City and Joplin yesterday all seem supportive. Open interest on Monday decreased by 1,182 (59,481). CME cash feeder Index for 04/28: 141.72, up .34.

LEAN HOGS:

Lean hog futures are mixed through the first hour of trading with nearbys outperforming deferreds. Summer issues are moderately higher at this time with the help of renewed bull spreading interest and technical buying. Open interest on Monday increased by 2,329 (220,968). Spot May added 7 (2,076) and June liquidated by 505 (78,189). Cash lean index 04/28: 59.88, up .24. We're still hearing problems tie to electrical problems and that could once again work to slow chain speed today. DTN projected slaughter for today is 420,000 head.

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

(SK)

Copyright 2017 DTN/The Progressive Farmer. All rights reserved.