DTN Before The Bell-Livestock

GENERAL COMMENTS

Firm pressure is seen in all livestock futures as traders continue to focus on increased market weakness. There may be some sluggish trade volume through most of the morning, as traders watch for market stability later in the day. Corn prices are lower in light trade. Stock markets are lower, Dow Jones is 182 points lower while the Nasdaq is down 69 points.

LIVE CATTLE:

Open: Steady to 30 cents lower. Light market pressure is trickling into nearby live cattle futures. The focus on pressure in feeder cattle markets is adding even more weakness to the entire complex. The expected supply of cattle ready for market over the near future and questions surrounding domestic and global beef demand growth through the remainder of 2018 are creating uncertainty. Cash cattle interest is expected to start over early Monday with showlist distribution and inventory-taking. Following cash cattle trade that was spread out through most of the week last week, it is possible that another long and strung-out week of trade may develop. Although it is not expected that bids or asking prices will develop until sometime Tuesday or Wednesday. Open interest Friday gained 1,685 positions (361,486). Spot month April contracts lost 2,608 positions (66,403) and June contracts added 2,741 positions (157,518). DTN projected slaughter for Monday is 116,000 head.

FEEDER CATTLE:

Open: 40 to 80 cents lower. Continued pressure is developing across the feeder cattle complex with nearby contracts holding losses early Monday morning near 40 cents per cwt lower. But more intense selling pressure has developed across the deferred complex with increased activity developing in all trade as traders remain concerned not only about the ability to bring trade back into the beef market through the spring and early summer months, but also outside market shifts. Cash index for 3/15 is listed at $142.71, down $0.10. Open interest Friday added 170 positions (51,687).

LEAN HOGS:

Open: 50 to 70 Lower. Early follow-through pressure is seen through the entire lean hog complex with traders focusing on a market pullback in summer contracts over the near future. This could add even more weakness to the market through the day as increased pressure is developing in all livestock trade. The focus on increased underlying market support in most contracts could bring some added concerns to the table over the near future as well as longer term. Cash hog trade Monday is expected $1 lower to 50 cents per cwt higher. Bids are scattered through the range. Open interest Friday lost 827 positions (229,206). Spot-month April fell 2,712 in positions (34,191), and June gained 1,070 positions (85,901). Cash lean index for 3/15 is $65.52, down 0.41. DTN projected slaughter for Friday is expected to be 462,000 head.

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

(SK)

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