DTN Before The Bell-Livestock

Nearby Live Cattle Jumps Open Midweek Trade Sharply Higher

(DTN photo by Nick Scalise)
GENERAL COMMENTS

Feedlot country remains very slow this morning with a few bids of $132-137 noted in Kansas. Asking prices are poorly defined with some suggestions of $142-145 in the South. Watch for results from the FCE later this morning. Cash hog bids this morning range from steady to $2 higher, though most of the effort is steady to $1 higher. The corn trade is fractionally mixed so far this morning in light trade volume. The stock market is mixed in the early rounds with the Dow up 36 and the Nasdaq off by 26.

LIVE CATTLE:

Prices are mixed through the opening hour with spot June sharply higher and deferreds moderately lower. Bull spreading interest supports the lead contracts as well as the tall premium status of the most recent feedlot sales. Open interest on Tuesday increased by 604 (432,123). New spot June liquidated by 3,736 (172,220) and August jumped 1,775 (108,282). DTN projected slaughter for today is 114,000 head.

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FEEDER CATTLE:

Feeders opened impressively higher, but have now slipped back into red ink. Deferred feeders quickly ran out of gas once deferred live issues hit the skids. Open interest on Tuesday decreased by 180 (59,253). CME cash feeder index for 05/01: 141.72, up 0.34.

LEAN HOGS:

May-July lean futures are significantly higher so far this morning, supported by bull spreading and technical buying. Open interest on Tuesday increased by 233 (221,130). Spot May added 45 (2,110) and June liquidated by 1,808 (76,321). Cash lean index 05/01: 60.29, up .41. DTN projected slaughter for today is 442,000 head. It sounds like the Saturday kill will total close to 118,000.

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

(SK)

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