DTN Before The Bell-Livestock

Active Buyers Push Hog Futures Higher

Rick Kment
By  Rick Kment , DTN Analyst
(DTN photo by Nick Scalise)

Light activity is seen early Monday with mixed price levels unable to give traders a good sense of direction when moving back to the market after the holiday weekend. Volume is expected to build over the next couple of days, which could bring some additional volatility to the complex. Corn futures are lower in light trade. Stock market futures are higher. Dow Jones is 45 points higher while Nasdaq is up 2 points.


Open: Steady to 30 cents lower. Light trading volume and narrow market shifts are the things focused on in the opening minutes of trade Monday. This could bring additional buyers to the complex following the sluggish trade last week. The overall uncertainty as to just how much additional volume will be seen over the next couple of days may keep prices moving higher and lower in a fixed trading range. Cash cattle markets are quiet with show list distribution expected to be the main focus through the morning. The overall light trade seen last week should increase both the amount of cattle on show lists and appetite for packers. Open interest Friday liquidated 1,575 positions (379,718). Spot December lost 1,428 positions (41,964) and February contracts fell 1,517 positions (154,260). DTN projected slaughter for Monday is 117,000 head.


Open: 20 to 40 cents lower. Lack of early week trade activity is likely to keep prices in a narrow but lower trading range through most of the morning. This may allow for further pressure as the week continues, but for the mean time traders are trying to build some stability into the complex following the holiday weekend. Cash lean index for 11/20 is listed at $156.71, down 0.20. Open interest Friday lost 56 positions (56,153).


Open: Steady to 50 cents higher. Firm support is quickly moving into the nearby lean hog futures following lackluster trade seen last week. This could help to drive additional long term support back into the hog complex as December futures are testing $64 per cwt while February futures are flirting with $70 per cwt price levels early in the week. Cash bids are called 50 cents lower to $1 higher most bids are steady. Open interest Friday lost 250 positions (247,349). Spot month December slipped 639 positions (33,986) and February fell 561 positions (92,833). Cash lean index for 11/20 is $64.41, down 0.42. DTN projected slaughter for Monday is 445,000 head.

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


Rick Kment