DTN Before The Bell-Livestock

GENERAL COMMENTS

Firm pressure is expected to hold through the entire livestock complex most of the morning Monday even though some mixed trade may develop in lean hog futures trade. The overall lack of moves in the market could keep traders focused on the ability to limit trade volume. There may be some additional interest seen Monday morning, but volume will be sluggish. Corn markets are trading lower in light trade activity. The stock market is trading lower in light early trade. Dow Jones is 55 points lower while Nasdaq is down 80 points.

LIVE CATTLE:

Opening call: 50 cents to $1 lower. Moderate pressure is expected to develop in live cattle futures Monday morning as trader are slowly starting to erode away from the $130 per cwt price levels. This may spark additional liquidation with June futures likely to hit triple-digit losses through the trading session and may bring additional follow through losses through the rest of the complex. Cash cattle markets are quiet early Monday with activity expected to be limited to just show list distribution and inventory taking. Activity was light to moderate with business taking place mostly on Friday last week. Northern business was seen generally $2 to $4 per cwt higher while most business was $1 per cwt higher in the South. Active trade will likely be seen through the second half of the week. Open interest Friday added 1,679 positions (415,634). Spot June liquidated 1,208 positions (15,069) and August contracts added 212 positions (193,634). DTN projected slaughter for Monday is 116,000 head.

FEEDER CATTLE:

Opening call: Steady to $1 Lower. Moderate early week pressure is slowly stepping into the feeder cattle market futures as traders are looking for additional softness following general lack of direction in the live cattle market last week. The inability bring traders back to the table could indicate some support back to the table and could allow markets to tumble lower and bring liquidation back to the market early in the week. Cash lean index for 6/7 is $154.11, up $1.30. Open interest Friday added 91 position (57,591).

LEAN HOGS:

Opening call: Mixed. Light pressure is slowly developing through nearby lean hog futures with traders focusing on early week trade as market activity may step back into the complex. There is expected to be some additional buyer support moving back into the complex over the near future. June futures have posted a light loss of 7 cents per cwt with July contracts leading the market lower falling 37 cent per cwt. He potential for follow through pressure could create additional shift later in the morning. Cash bids are steady. Open interest Friday added 2,665 positions (252,375). Spot month June lost 931 positions (13,938) and July lost 4,177 positions (48,005). Cash lean index for 6/7 is $79.41, up $0.61. DTN projected slaughter for Monday is 438,000 head.

Rick Kment can be reached at rick.kment@dtn.com

(SK)

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