DTN Before The Bell-Livestock

Light Activity Friday Morning

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

Narrow trade ranges are seen early Friday morning as only a limited amount of traders seem interested in stepping back into the complex. Markets will close early Friday ahead of the holiday weekend. This should keep markets quiet through most of the session. Corn futures are steady in light trade. Stock market futures are lower Dow Jones is 24 points lower while Nasdaq is down 12 points.

LIVE CATTLE:

Open: Mixed.

Traders are entering this holiday-shortened trading session with little activity and a sense of market direction that most feel will go absolutely nowhere before the long holiday weekend. With cash business done for the week and light activity in outside markets, live cattle futures are expected to chop around in a narrow range with little direction through the end of the week. Cash cattle markets are expected to be done for the week following moderate trade over the last couple of days. It is likely that even any additional clean-up activity may not develop as both sides are focusing on the upcoming holiday weekend. Open interest Thursday fell 2,667 positions (330,694). Spot December lost 683 positions (2,450) and February contracts fell 2,240 positions (121,505). DTN projected slaughter for Friday is 117,000 head.

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FEEDER CATTLE:

Open: Steady to 20 cents lower.

Light market shifts are seen through the cattle market Friday morning as more traders are preparing for the long Christmas weekend. The narrow price ranges are likely to keep markets sluggish through most of the day as only a limited amount of activity is expected the rest of the week. Cash lean index for 12/19 is listed at $152.47, down 0.03. Open interest Thursday lost 626 positions (53,456).

LEAN HOGS:

Open: Mixed.

Light trade has trickled into the market early Friday morning with traders expected to remain sluggish through the rest of the session. Trade will be abbreviated due to the holiday weekend, but this is still allowing the few traders who have ventured into the market the ability to see a choppy market direction through the morning. Prices are seen from 20 cents lower to 27 cents per cwt higher in light trade. This may spark some additional market shifts over the near future, but the light volume may continue to limit widespread direction shifts. Cash bids are steady to $1 per cwt lower. Most bids are steady. Open interest Thursday fell 317 positions (227,484). Spot month February fell 1,266 positions (87,282) and April added 598 positions (59,972). Cash lean index for 12/20 is $62.00, down 0.38. DTN projected slaughter for Friday is 465,000 head. Saturday runs are expected at 136,000 head.

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

(BAS)

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Rick Kment