DTN Before The Bell-Livestock

GENERAL COMMENTS

Cattle country is extremely quiet this morning with business essentially done for the week. Steers and heifers still left on showlists are probably priced around $148-plus in the South and $230-232 plus in the North. The cash hog trade is opening this morning with another round of firm bids. Buying effort ranges from steady to $2 higher with most bids a buck higher. The corn market is trading 3-4 cents higher in the early going, supported planting uncertainty and late week short covering. The stock market is mixed in early business with the Dow off 19 points and the Nasdaq up 3.

LIVE CATTLE:

Live issues are 137 to 182 lower in early trading, apparently pressured by profit taking, long liquidation, and ideas that a spring cash top can't be far away. Yesterday's significant reversal in buying energy probably stirred worries regarding the latter. Open interest on Thursday increased by 135 (421,952). Spot June aggressively liquidated by 10,342 (150,407) and August jumped 5,484 (114,931). DTN projected slaughter for today is 116,000 head. Saturday's slaughter should total near 45,000.

FEEDER CATTLE:

Feeder contracts are getting hit hard so far this morning with prices off 100 to 370. It's been a wild week of price swings, making it tough to predict where feeders will finally land at today's close. High prices and greater volatility often go hand in hand. Open interest on Thursday increased by 109 (59,023). CME cash feeder index for 05/03: 145.39, up 2.41.

LEAN HOGS:

Mixed action here in the opening rounds is a real yawner compared with the bearish swinging in the cattle complex. Lean futures are mixed, up 27 to off 7 as traders cautiously assess seasonal prospects. Open interest on Thursday decreased by 310 (217,686). Spot May lost 203 (1,844) and June liquidated 2,796 (70,314). Cash lean index 05/03: 62.24, up 1.10. DTN projected slaughter for today is 428,000 head. The Saturday kill should total close to 118,000.

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

(SK)

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