DTN Before The Bell-Livestock

Lean Futures Trade Mixed in Early Rounds

(DTN photo by Nick Scalise)
GENERAL COMMENTS

The cash cattle trade this morning is very slow and business could be done for the week. At the very least, late-week buying interest will probably be momentarily paused in the face of significantly higher asking prices linked to Thursday's surge in live futues. Hog buyers have returned to work this morning with bids steady to $1.25 higher (mostly steady to a buck better). Corn prices are slightly lower in the early rounds despite the announcement of new sales to Egypt and inknown dstinations. The stock market in der pressure in the early rounds, ignoring positive news of the addition of 200,000 jobs in January. The Dow is currently 214 points lower with the Nasdaq off by 22.

LIVE CATTLE:

Live futures are mixed in the opening hour thanks to a slow combo of follow-through buying and profit taking. Note yesterday's surge in open nterest, a shift that may lend credibility to the technical significance of the late week rally. Traders will be eager to learn whether or not the board can hold (or even build upon). yesterday's impressive comeback. Open interest on Thursday increased by 5,867 (368,751). Spot February liquidated by 1,869 (29,162) and April jumped 2,066 (151,678). DTN projected slaughter for today is 114,000 head. Saturday's slaughter is estimated by DTN at 30,000.

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FEEDER CATTLE:

Feeders are moderately lower this morning, checked by early profit taking and the discount of the cash index. Open interest on Thursday increased by 1,375 (54,863). CME cash feeder index for 01/31: 147.95, up .44.

LEAN HOGS:

While nearby lean futures have open with a firm undertone thanks to strengthening cash, deferreds are undersome pressure. Open interest on Thursday decreased by 2,362 (238,570). Spot February liquidated by 519 (15,442) and April declined by 1,594 (100,404). Cash lean index 01/31: 73.87, up .02. DTN projected slaughter for today is 462 head. Saturday's kill should total close to 117,000.

John A. Harrington can be reached at john.harrington@dtn.com

(SK)

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