DTN Before The Bell-Livestock

GENERAL COMMENTS

Live cattle futures are mixed in sluggish market activity with very little additional long term direction developing through the complex. There is likely to be some increased market direction developing through the week. The light trade may continue to keep prices mixed in a narrow range. Corn futures are higher in light trade. Stock market futures are mixed, Dow Jones is 49 points higher while Nasdaq is down 6 points.

LIVE CATTLE:

Open: Mixed. Light activity is seen in live cattle futures with very little additional market direction developing in the early hours of trade. The focus on recent market pressure is helping to bring some additional buyers back into nearby contracts, although there may be some increased pressure developing following the softness in cash cattle trade. Sluggish activity is expected to be seen over the next few trading sessions. Cash cattle activity is quiet early Tuesday morning following the light trade seen in all areas. There continues to be some additional focus on additional trade that will develop. This may bring increased activity over the next few days Cash markets were seen $1.50 to $3 per cwt lower than last week's price levels, which may limit end of the week support at this point. Open interest Monday added 3,066 positions (348,654). Spot February lost 4,808 positions (104,534) and April contracts gained 5,759 positions (111,348). DTN projected slaughter for Tuesday is 118,000 head.

FEEDER CATTLE:

Open: Steady to 50 cents lower. Limited trade activity is expected to be seen through most of the morning Tuesday following the early week market shifts that has developed across the complex. This may keep prices under pressure as traders continue to focus on the lack of fundamental support over the last week. This could spark some additional longer term interest. Cash lean index for 1/5 is listed at $153.92, down 1.32. Open interest Monday fell 84 positions (51,486).

LEAN HOGS:

Open: Steady to 30 cents lower. Limited activity is expected to help bring some stability back into the lean hog futures complex with traders focusing on the ability to hold narrow trading ranges through most of the morning. This could limit increased trade volume, but may spark some additional longer term direction in all hog markets. Cash bids are steady to $2 per cwt higher. Most bids are 50 cents to $1 higher early Tuesday. Open interest Monday added 2,412 positions (250,369). Spot month February fell 4,957 positions (71,807) and April added 3,580 positions (77,101). Cash lean index for 1/05 is $65.65, up 1.81. DTN projected slaughter for Tuesday is expected to be 465,000 head. Saturday runs are expected at 151,000 head.

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

(SK)

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