DTN Before The Bell-Livestock

GENERAL COMMENTS

Narrowly mixed trade remains the focus through most livestock futures early Monday as traders try to adjust the early week trade to a combination of outside market direction and potential movement in cash trade. Corn markets are trading lower in light trade activity. The stock market is trading higher in light early trade. Dow Jones is 141 points higher while Nasdaq is up 68 points.

LIVE CATTLE:

Opening call: Mixed. Narrow trading ranges have developed early Monday morning with the focus on market stability following the weekend. There is very little short term direction expected to be seen through the complex, which may keep prices in a single digit range through much of the morning. Cash cattle markets are undeveloped early Monday with show list distribution and inventory taking once again the main order of business. Open interest Friday fell 3,450 positions (311,728). Spot August lost 945 positions (11,026) and October contracts fell 3,662 positions (158,929). DTN projected slaughter for Monday is 116,000 head.

FEEDER CATTLE:

Opening call: Steady to 30 cents higher. Light buyer support is slowly trickling into the feeder cattle futures complex early Monday morning. Follow through support following the firm gains late last week is helping to create some additional support through the complex, although the overall tone of the market remains light with traders unwilling to actively step back into the complex. Cash lean index for 8/10 is $145.96, down 1.97. Open interest Friday fell 914 position (58,127).

LEAN HOGS:

Opening call: Mixed. Narrowly mixed trade has slowly developed early Monday morning with traders focusing on light market adjustments early in the week. There is very little additional long term direction developing over the weekend or early in the week. This should keep prices in a tight trading range through the first couple hours of trade, potentially focusing on outside market direction. Cash bids are steady to $1 lower with most bids steady to 50 cents lower. Open interest Friday added 1,665 positions (268,100). Spot month August liquidated 1,501 positions (10,079) and October added 586 positions (119,156). Cash lean index for 8/10 is $85.25, down 0.25. DTN projected slaughter for Monday is 445,000 head.

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

(SK)

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