DTN Before The Bell-Livestock

GENERAL COMMENTS

The cash cattle trade remains dormant this morning with bids and asking prices yet to surface. Significant trade volume could be easily delayed until Thursday or Friday. Hog buyers appear to be working with generally steady bids in the. early going. Corn futures have opened 1-2 cents higher, supported by dry Brazilian weather and less than ideal planting conditions through the week in many major production areas. The stock market has opened on the defensive with the Dow off 142 points and the Nasdaq in the red by 15.

LIVE CATTLE:

New spot June makes its debut this morning miles below feedlot cash. When (if ever) with nearby futures move closer to cash? Not much of an answer is evident so far this morning with live futures narroly mixed. Open interest on Monday decreased by 437 (349,350). Spot June liquidated by 3,107 (142,123) and August jumped 1,929 (94,905). DTN projected slaughter for today is 118,000 head.

FEEDER CATTLE:

Feeder futures have started as listlessly as their live counterparts. Clearly, the market will take clues frm the success (or lack of) of deferred live futures. Open interest on Monday decreased by 844 (44,212). CME cash feeder Index for 04/11: 135.76, up 0.91.

LEAN HOGS:

Lean hog contracts are modestly higher, but certainly not enough to suggest a bullish shift anytime soon. Having said that, most still believe summer months will enjoy some kind of seasonal rally over the next 30-60 days. Open interest on Monday surged by 5,964 (260,117). Spot May liquidated by 26 (3,058) and June jumped by 3,098 (100,766). CME cash lean index for 04/27: 62.20, up 0.45. DTN projected slaughter for today is 465,000 head.

--

John A. Harrington

(SK)

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