DTN Before The Bell-Livestock

GENERAL COMMENTS

Narrow prices shifts have been seen in all livestock markets with traders focusing on the ability to bring some stability into the cash markets. Additional volume may continue to help spark additional interest. Corn futures are lower in light trade. Stock market futures are higher. Dow Jones is 119 points higher while Nasdaq is up 5 points.

LIVE CATTLE:

Open: Steady to 25 cents higher. Very sluggish trade activity is seen early Thursday morning with nearby contracts holding gains of 12 to 17 cents per cwt. This support through the complex has helped to draw buyers back into the market with traders focusing on the ability to draw additional strength through the end of October. October futures contracts are getting ready to expire, which will then put the focus on December contracts and spot month prices above $119 per cwt. This could have significant impacts in both cash and futures trade over the next couple of weeks. Cash cattle activity undeveloped Thursday morning following quiet movement through midweek. There is expected to be more packer interest developing through the day, but active trade may not be seen until Friday. Open interest Wednesday gained 1,115 positions (337,059). Spot October lost 655 positions (1,694) and December contracts liquidated 2,660 positions (138,283). DTN projected slaughter for Thursday is 117,000 head.

FEEDER CATTLE:

Open: Mixed. Narrow gains in nearby contracts are being offset by slight pressure in deferred contract months. This has allowed for traders to take a breather following the market surge seen early in the week. With October futures trading above $155 per cwt through the morning, there continues to be some underlying focus on the ability to draw additional buyer activity back into the market over the near future. Cash lean index for 10/24 is $154.58, down 0.01. Open interest Wednesday added 412 position (63,307).

LEAN HOGS:

Open: Steady to 20 Higher. Narrow gains have trickled into the lean hog futures complex with traders focusing on the ability to draw follow through interest into the market after moderate to strong gains developed midweek. This helped to spark some additional buyer activity through the complex which may bring some additional buyer activity back into the complex. Nearby futures are holding gains of 2 to 15 cents per cwt as the focus continues to be based on moving prices through recent price resistance levels. Cash bids are called steady to 50 cents lower with most bids steady. Open interest Wednesday added 1,434 positions (253,262). Spot month December slipped 2,015 positions (112,716) and February added 2,102 positions (52,292). Cash lean index for 10/24 is $67.32, up 1.22. DTN projected slaughter for Thursday is 465,000 head. Saturday runs are expected for 201,000 head.

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

(SK)

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