DTN Before The Bell-Livestock

Meat Futures Trade Some Lower in Opening Rounds

(DTN photo by Nick Scalise)
GENERAL COMMENTS

Activity in cattle country this morning will be limited to the distribution of new showlists. Given relatively decent trade volume total last week, we expect the mid month offering of fed steers and heifers to be steady to somewhat smaller. On the caash hog front, early bids range from steady to $1 lower with most of the early effort off .50-$1. Corn futures are 1-2 cents lower at this time linked to Friday selling and promising forecasts relative to early planing prospects. The stock market is higher in early business with the Dow up 80 points and the Nasdaq positive by 29.

LIVE CATTLE:

Live issues are 10-30 lower in the early going as traders slowly asssess mid-month case potential. Alhough the feedlot trade remains well above the board, CME haven't been bothered by the strong basis. Will this week be any different? Open interest on Friday decreased by 4,500 (363,086). Spot April liquidated by 10,332 (91,635) and June expanded by 3,372 (142,636). DTN projected slaughter for today is 118,000 head.

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FEEDER CATTLE:

Early action is listlessly lower here as well in the opening round of trading. Prices are drifting in a narrow range of 10-20 points. Open interest on Friday decreased by 1,536 (53,393). CME cash feeder index for 03/08: 144.15, off 0.57.

LEAN HOGS:

Lean futures are moderaately lower in the early rounds, pressured by nervous ideas of further product weakness over the next several weeks. Weely slaughter is expected to hang around 2.4 million head before falling off sometime in early April. Open interest on Friday increased by 22,446 (223,735). Spot April liquidated by 5,996 (52,889) and June increased by 5,244 (68,722). Cash lean index 03/08: 67.52, off .12. DTN projected slaughter for today is 462,000 head.

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

(SK)

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