DTN Before The Bell-Livestock

GENERAL COMMENTS

Light trade is seen early Monday morning with traders focusing on the active support in the early trade volume. There may be limited additional information available in both cattle and hog markets through the day Monday, but this could leave markets support in cattle markets supported based on follow through activity. Corn markets are trading higher in light trade activity. The stock market is trading higher in light early trade. Dow Jones is 202 points higher while Nasdaq is up 77 points.

LIVE CATTLE:

Opening call: Steady to 50 cents higher. Sluggish activity is moving into the live cattle market in the opening trade Monday morning, although the tone of the market remains firm. The strong support seen through the complex late last week has helped to add even more firmness to the complex, although there is expected caution in the market as cash market support remains subdued through most of the week. Cash cattle markets are undeveloped following the light late week activity that took place Friday afternoon at generally steady money. Show list distribution and inventory taking is expected to be the main order of business, although most trade is not expected to be seen until the second half of the week. Open interest Friday added 1,812 positions (324,608). Spot October lost 6,765 positions (122,090) and December contracts added 4,233 positions (96,889). DTN projected slaughter for Monday is 119,000 head.

FEEDER CATTLE:

Opening call: 50 cents to $1 higher. Firm support is moving into feeder cattle trade as buyers have redeveloped following the renewed support as traders are looking for additional support with nearby contrats moving to $148 to $149 per cwt in nearby contracts. This underlying support in the feeder cattle complex is helping to draw light but solid support through the live cattle market early Monday with follow through buying activity likely to be seen through the entire complex. Cash lean index for 9/7 is $148.24, up 1.19. Open interest Friday added 186 position (50,983).

LEAN HOGS:

Opening call: Steady to 50 cents lower. Light early week pressure is stepping into the lean hog futures complex early Monday morning as traders have focused on backing away from late week support seen Friday. The focus on additional market shifts seen in cash and pork values through the month of September may allow lean hog values to wander in a narrow range through much of the morning. Cash bids are 50 cents to $1.50 lower with bids scattered through the range. Open interest Monday fell 667 positions (248,265). Spot month October slipped 5,388 positions (82,860) and December added 2,997 positions (77,336). Cash lean index for 9/7 is $68.94, down 0.43. DTN projected slaughter for Monday is 450,000 head.

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

(SK)

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