Bids and asking prices on fed cattle are poorly defined this morning. Both feedlot managers and packers are closely monitoring the board for clues of midsummer price direction. Barring the surfacing of basis opportunities, we may not see much country biz until the second half of the week. Hog buyers have started out this morning with bids ranging from steady to $2 lower. Most accounts are working steady to $1 lower. The corn market is fractionally higher in the early round with short covering in light volume. The stock market is moderately higher so far this morning with the Dow up 31 points and the Nasdaq better by 34.
Live futures are 30-60 higher in the early rounds, supported by short covering and the still premium status of cash market. Note that the decline in open interest suggests that most of Monday's sell-off was tied to long liquidation. Spot June expires on Friday at high noon. Open interest on Monday decreased by 1,731 (325,663). Spot June liquidated by 738 (2,537) and August lost 2,203 (142,700). DTN projected slaughter for today is 120,000 head.
Feeder contracts are mostly higher this morning with changing currently chalking from 67 higher to 25 lower. Spot August continue to hold a decent premium to the cash index. Open interest on Monday increased by 612 (45,878). CME cash feeder index for 06/22: 142.28, off .29
Leans issues are rebounding in the early going thanks to short covering and bull spreading. Price changes range from 40 to 167 higher. Traders are no doubt posturing with some care before the release of Thursday's H&P report. Open interest on Monday decreased by 1,207 (226,063). Spot July liquidated by 643 (23,939) and August declined by 1,387 (76,552). Cash lean index 06/22: 86.20 up .03. DTN projected slaughter for today is 445.000 head. Early talk calls for another small Saturday kill this week, though possibly a bit larger than last week (e.g., 10,000-12,000).
John A. Harrington can be reached at email@example.com
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