DTN Before The Bell-Livestock

GENERAL COMMENTS

Mixed cattle market trade is likely to develop through the complex. There is growing uncertainty as traders are looking for underlying support in all areas. Corn prices are higher in light trade. Stock markets are lower, Dow Jones is 109 points lower while Nasdaq is down 41 points.

LIVE CATTLE:

Open: Mixed. Firm gains have slowly developed in live cattle futures through nearby contracts. But deferred market pressure is limiting the potential for additional support through the morning. Cash cattle markets is still sluggish with bids still quiet midweek. There is likely to be some additional activity through the end of the session, but active trade will likely be pushed off until Thursday or Friday. Open interest Tuesday added 1,221 positions (346,785). Spot month April contracts lost 1,389 positions (3,523) and June contracts fell 839 positions (149,007). DTN projected slaughter for Tuesday is 119,000 head.

FEEDER CATTLE:

Open: Mixed. Nearby gains have slowly developed across the complex. There is growing interest in spring contracts, but light to moderate pressure in deferred contracts has pushed the majority of contracts lower early Wednesday morning. Cash index for 4/20 is listed at $138.13 down 1.57. Open interest Tuesday added 205 positions (48,529).

LEAN HOGS:

Open: 40 to 50 cents lower. Follow-through pressure has continued to develop across the complex with traders looking for increased overall stability, but unable to find it. The lack of support in cash markets through the middle of the week is adding even more weakness to all futures trade. Cash hog trade Wednesday is steady to $1 lower. Most bids are seen steady to weak. Open interest Tuesday added 2,618 positions (245,266). Spot month May fell 124 positions (3,399) and June added 923 positions (94,776). Cash lean index for 4/20 is $57.88, up 1.08. DTN projected slaughter for Wednesday is expected to be 465,000 head. Saturday runs are scheduled at 53,000 head.

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

(SK)

Copyright 2018 DTN/The Progressive Farmer. All rights reserved.