DTN Before The Bell-Livestock

GENERAL COMMENTS

Livestock futures are mixed in narrow ranges through the first few minutes of trade. An attempt to break out of the narrow trading range is expected through the morning, but the limited trade volume will likely keep markets well contained to current trading ranges. Corn prices are higher in light trade. Stock markets are higher, Dow Jones is 156 points higher while Nasdaq is up 45 points.

LIVE CATTLE:

Open: Mixed. Limited trade direction is seen in live cattle futures with traders looking for moves both inside and outside the livestock market to draw additional trade interest back to the table. At this point, live cattle futures are mixed in a narrow trading range with very limited activity seen through the complex. Cash cattle activity remains quiet following a few token bids at $120 per cwt through the South on Monday. Trade is expected to remain undeveloped until midweek or later, with traders looking for additional long-term direction from the rest of the complex. Open interest Monday slipped 1,114 positions (361,630). Spot month April contracts lost 6,296 positions (85,056) and June contracts added 3,894 positions (146,489). DTN projected slaughter for Tuesday is 117,000 head.

FEEDER CATTLE:

Open: Mixed. Sluggish market activity is seen in all livestock markets, and feeder cattle trade is no exception to this lack of interest early Tuesday morning. Prices are hovering from 27 cents lower to 5 cents higher in very limited trade as traders seem to be following the early week pressure back into the market. There is growing uncertainty as to just how much additional pressure will develop over the next couple of days as traders try to balance market fundamentals with outside market activity. Cash index for 3/9 is listed at $143.34, down 0.74. Open interest Monday fell 724 positions (52,648).

LEAN HOGS:

Open: Mixed. Light gains have slowly developed in most contracts with prices hovering from 10 cents lower to 20 cents higher. The inability for prices to show significant market direction early in the week is helping to bring some needed stability back into the complex. There is growing uncertainty as to which direction the hog complex may move next, but for now, traders seem content holding prices in a narrow range through most of the morning. Cash hog trade Friday is expected steady to $1 per cwt lower. Most bids are expected steady to 50 cents lower. Open interest Monday added 3,226 positions (226,930). Spot month April fell 4,031 in positions (48,858) and June gained 5,437 positions (74,128). Cash lean index for 3/9 is $67.05, down 0.47. DTN projected slaughter for Tuesday is expected to be 463,000 head.

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

(SK)

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