DTN Before The Bell-Livestock

GENERAL COMMENTS

Livestock futures are mixed in light trade volume as cattle futures are mixed to mostly lower due to nearby futures holding narrow losses. Firm buyer support has posted triple-digit gains in lean hog futures based on firm cash market gains and the focus on additional fundamental support. Corn markets are trading lower in light trade activity. The stock market is trading higher in light early trade. Dow Jones is 80 points higher while Nasdaq is up 60 points.

LIVE CATTLE:

Opening call: Mixed. Mixed prices in a narrow price range is expected to remain through most of the morning. This is likely to remain the focus through the complex. Although trade activity is likely to develop later in the morning, lack of activity could keep prices generally in a narrow market range during most of the morning. Cash cattle markets are expected to remain undeveloped in show list development likely to once again be the main focus through the market. There will likely be very little activity from bids or asking prices through the day, although trade interest will likely be seen through the last half of the week. Open interest Friday liquidated 1,323 positions (404,479). Spot June lost 1,018 positions (8,227) and August contracts fell 688 positions (185,093). DTN projected slaughter for Monday is 116,000 head.

FEEDER CATTLE:

Opening call: Mixed. Uncertainty is still seen across the cattle complex and feeder cattle markets specifically as traders seem to remain uncertain as what market moves will be seen through early week trade. The late week support which developed Friday may help to bring some follow through buyer activity back into the complex, but there continues to be some technical pressure and softness as commercial pressure is still developing. This will likely keep prices choppy through the morning, but markets may remain in a narrow market range. Cash lean index for 6/15 is $151.07, down $1.66. Open interest Friday liquidated 300 position (55,091).

LEAN HOGS:

Opening call: Steady to $1 higher. Strong buyer support has stepped back into the market early Monday morning following the expectation of additional support moving into the complex. This could help to draw increased support later in the session with triple-digit gains seen in summer contracts and potentially bringing strong technical gains into most contracts through the last half of the month. Cash bids are steady to $1 higher with bids scattered through the range. Open interest Friday fell 3,644 positions (250,376). Spot month July liquidated 188 positions (35,024) and August fell 431 positions (87,546). Cash lean index for 6/15 is $84.06, up $1.13. DTN projected slaughter for Monday is 430,000 head.

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

(SK)

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