DTN Before The Bell-Livestock

GENERAL COMMENTS

Live cattle futures and feeder cattle markets have posted aggressive buyer support back into the complex. This may add even more support to the entire livestock market as more buyers are quickly moving into the complex. Corn prices are higher in light trade. Stock markets are higher, Dow Jones is 56 points higher while Nasdaq is up 25 points.

LIVE CATTLE:

Open: 50 cents to $2 higher. Aggressive buyer support has flooded into front-month futures with traders looking for increased overall support across the complex. If nearby gains can hold near $2 per cwt higher through the morning, this should bring added support to the rest of the complex. Cash cattle markets are quiet early Wednesday morning following light to moderate trade which developed on a live basis from $126 to $128 per cwt. These prices are generally $1 per cwt higher than last week. Asking prices are seen at $128 to $129 live and $206 and higher dressed. Open interest Tuesday 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 Wednesday is 117,000 head.

FEEDER CATTLE:

Open: $1 to $2 higher. Light pressure is developing across the complex with traders looking for increased underlying support in the complex. There is growing support through the entire cattle market, although given the volatility in the past couple of weeks, there may be some uncertainty as to just how much additional direction may develop before the end of the session. Cash index for 3/13 is listed at $143.34 down 0.74. Open interest Wednesday fell 624 positions (52,648).

LEAN HOGS:

Open: Mixed. Firm pressure is seen in nearby contracts although narrowly mixed trade activity is seen in the first few minutes of activity through the rest of the complex. There seems to be some additional pressure developing following the move higher Tuesday, although the underlying tone of the market remains weak. Cash hog trade Wednesday is expected steady to $1 per cwt lower. Most bids are expected steady to 50 cents lower. Open interest Tuesday added 3,658 positions (230,522). Spot month April fell 4,031 in positions (48,858) and June gained 7,437 positions (74,128). Cash lean index for 3/13 is $67.05, down 0.27. DTN projected slaughter for Wednesday is expected to be 465,000 head. Saturday runs are expected to be near 119,000 head.

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

(SK)

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