DTN Before The Bell-Livestock

GENERAL COMMENTS

Mixed trade is noted in livestock futures early Monday morning. We could continue to see overall support through the market, although early gains in lean hog futures have been offset by lackluster interest in cattle markets through the first few minutes of trade. Corn markets are trading lower in light trade activity. The stock market is trading higher in light early trade. Dow Jones is 49 points higher while Nasdaq is up 15 points.

LIVE CATTLE:

Open: Mixed. Nearby live cattle futures are mixed in a narrow range early Monday morning. The volatility through the complex over the last couple of weeks is likely to lead to additional market shifts through the entire cattle market. But, if traders can keep prices from moving in a wide range through early trade, the focus will be driven on outside markets as well as potential beef values during early October. Cash cattle activity remains quiet with bids and asking prices undeveloped Monday morning as the focus has moved back to inventory taking and showlist distribution. It is expected that cash trade will be delayed until the second half of the week. Open interest Friday fell 2,736 positions (334,439). Spot October lost 4,793 positions (38,879) and December contracts added 774 positions (146,578). DTN projected slaughter for Monday is 117,000 head.

FEEDER CATTLE:

Open: Mixed. Activity is light as traders take a wait-and-see approach following the new month and quarter on the books. There may be some additional trade volume moving into the market through late morning, although the overall lack of direction could keep markets generally subdued through most of the trading session. Cash lean index for 9/28 is $153.06, up 0.98. Open interest Friday gained 185 position (60,872).

LEAN HOGS:

Open: 30 cents to $1 higher. Strong, early morning buyer support moved back into the lean hog futures complex with the main focus the front-month October futures contract, which is holding triple-digit gains through the first few minutes of trade. This may continue to draw additional buyer support back into the complex as firm gains are seen in all nearby contracts. Cash bids are $1 lower to 50 cents higher with most bids steady. Open interest Friday added 470 positions (258,826). Spot month October slipped 2,443 positions (33,211) and December added 1,291 positions (119,044). Cash lean index for 9/28 is $54.84, down 0.70. DTN projected slaughter for Monday is 460,000 head.

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

(SK)

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