DTN Before The Bell-Livestock
Cattle Futures Trade Narrowly Mixed in Early Going
Cash cattle potential should develop better definition today as both sides feel free to post preliminary bids and asking prices. Buyers and sellers will be eager to learn about internet business later this morning with the FCE reports its results.
That said, FCE receipts are quite light this morning, just a bit over 1,000 head. We'll post such activity on the cash cattle page as soon as it becomes available. Hog buyers have returned to work this morning with bids .50-$1 lower. Corn futures are about 4 cents higher, supported by early sort covering profit taking. The Dow has nosed over 22,000 (i.e., up 57 points) for the first time ever. The Nasdaq is positive by 15.
LIVE CATTLE:
Live contracts are cautious higher at this time, somewhat supported by follow-through buying and pre-cash short covering.
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Traders are hold their cards close until more evidence surfaces regarding cash potential. Open interest on Tuesday decreased by 3,284 (352,561). Spot August liquidated by 534 (38,990) and October lost 2,858 (178,055). DTN projected slaughter for today is 120,000 head.
FEEDER CATTLE:
Feeders opened on a mixed basis, but now seem to be firming a bit as we move toward midmorning. The premium of the cash index and lackluster action in the corn market are two supporting factors. Open interest on Tuesday increased by 358 (59,196). CME cash feeder index for 07/31: 150.79, up 0.38.
LEAN HOGS:
Spot August has opened modestly higher, benefiting some from the still large premium of the cash trade. Yet the balance of the trade is currently lower by 27 to 67 as specs and commercial still feel motivated to make deep discounts even deeper (i.e., clearly fearful of late year tonnage). Open interest on Tuesday decreased by 4,269 (264,128). Spot August liquidated by 3,282 (24,985) and October declined by 2,337 (117,356). Cash lean index 07/31: 87.70, off 0.40.
DTN projected slaughter for today is 443,000 head.
John A. Harrington can be reached at john.harrington@dtn.com
(SK)
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