DTN Before The Bell-Livestock

Pre-holiday Trade Keeps Markets Sluggish

Rick Kment
By  Rick Kment , DTN Analyst
(DTN photo by Nick Scalise)

Mixed trade is seen through the entire livestock complex with minimal trade activity seen through the complex. This may keep markets well contained in a narrow range over the next few hours. Markets will remain closed Wednesday in observance of the Fourth of July holiday. Corn prices are higher in light trade. Stock markets are mixed, Dow Jones is 116 points higher while Nasdaq is down 11 points.


Open: Mixed. Very limited activity is seen early Tuesday with nearby contracts steady to 30 cents higher while narrow losses are seen in deferred contracts. The strong market shift higher over the last few trading sessions is causing some traders to take a step back given the limited activity and upcoming holiday. With markets scheduled for an early close Tuesday and the market closed Wednesday for the holiday, very limited activity is expected not only through the morning, but through the rest of the week. Cash cattle activity is quiet and is likely to remain that way until after both sides return from celebrating Independence Day. A few scattered asking prices have been seen at $112 live basis and $185 dressed, but this is not likely to spark much interest before the holiday break Wednesday. Open interest Monday gained 795 positions (325,647). Spot month August contracts lost 3,065 positions (131,867) and October contracts added 634 positions (131,867). DTN projected slaughter for Tuesday is 119,000 head.


Open: 5 to 60 cents. Light pressure is seen in all feeder cattle futures early Tuesday morning as traders seem to be slowly backing away from the moves seen early in the week. The lack of additional trade volume on the eve of the Independence Day holiday, is likely to keep markets sluggish and generally directionless through the day. Cash index for 6/29 is listed at $142.67.00 up 0.67. Open interest Monday gained 378 positions (47,093).


Open: Mixed. Traders Tuesday morning seem to be going through the motions with an early close to futures trade Tuesday and markets closed on Wednesday, many traders are only focusing on squaring needed positions, and likely will wait until after the holiday, or even next week before stepping back into the complex. This could leave markets wandering in the same mixed range as seen at opening bell with prices hovering from 70 cents lower to 65 cents higher. Cash hog trade Tuesday is steady to $1 lower per cwt. Most bids are steady. Open interest Monday added 1,893 positions (233,379). Spot month July fell 1,093 positions (16,145) and August slipped 1,321 positions (75,120). Cash lean index for 6/29 is $82.97 up 0.28. DTN projected slaughter for Tuesday is at 455,000 head. Saturday runs are expected at 150,000 head.

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


Rick Kment