DTN Before The Bell-Livestock

GENERAL COMMENTS

Livestock futures are expected to remain under pressure with strong redeveloping losses in feeder cattle trade leading the complex lower. This may spark some additional pressure through the entire complex. Corn futures are higher in light trade. Stock market futures are lower. Dow Jones is 45 points lower while Nasdaq is down 22 points.

LIVE CATTLE:

Open: Steady to 60 cents lower.

Light to moderate pressure is slowly developing across the live cattle complex. This is sparking some additional weakness in all cattle markets. Traders continue to look for additional direction in market fundamentals as futures prices are expected to hold a narrow range due to the light trade early in the session Wednesday. Cash cattle activity remains quiet with little additional direction expected early in the session Wednesday. Bids will likely develop around $123 live and $193 dressed. More packer interest is expected as the day goes along. DTN projected slaughter for Wednesday is 118,000 head.

FEEDER CATTLE:

Open: $1 to $1.50 lower.

Strong follow-through pressure is expected in early trade Wednesday afterTuesday's aggressive move lower created additional pressure with increased liquidation. This additional weakness could continue through the week as well as the entire holiday season. Cash lean index for Dec. 14 is listed at $154.40, up 0.09.

LEAN HOGS:

Open: Mixed.

Light market firmness is developing early in the session with nearby contracts posting gains of 20 cents to 40 cents per cwt. The lack of follow-through buying in nearby contracts is limiting any support in deferred futures. The tone of the market remains under pressure due to the expected light activity and sluggish holiday trade. Cash bids are steady to $1 per cwt lower. Most bids are 50 cents lower. Cash lean index for Dec. 15 is $63.18, down 0.93. DTN projected slaughter for Wednesday is 465,000 head. Saturday runs are expected at 135,000 head.

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

(BAS)

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