Early trade is seen through the complex with trades looking for increased overall pressure in the market. This may add some additional uncertainty to the complex. Narrow moves in live cattle futures are being offset by sharp losses in hog markets. Corn prices are lower in light trade. Stock markets are mixed, Dow Jones is 5 points lower while Nasdaq is up 30 points.
Open: Mixed. Narrow trading ranges are seen in initial trade Monday morning. The overall lack of support in the complex is seen following a sluggish week of trade last week. This may bring some additional market shifts in the coming days. Cash cattle activity remains undeveloped with inventory taking and show list distribution the main focus of the complex through the first day of the week. Open interest Friday gained 647 positions (323,719). Spot month August contracts lost 3,789 positions (123,561) and October contracts added 2,385 positions (91,894). DTN projected slaughter for Thursday is 118,000 head.
Open: 20 to 60 cents lower. Firm pressure is slowly developing in feeder cattle trade. With increased volume expected through the next couple of days, additional price losses may continue to move into all cattle markets as the focus on long term demand is impacting feeder cattle as well as live cattle markets. Cash index for 7/3 is listed at $144.73 up 0.96. Open interest Friday added 378 positions (47,215).
Open: $1 to $1.50 lower. Light to moderate pressure is seen in lean hog futures although the lack of support through the morning is causing some additional price weakness that could add some uncertainty to the entire complex. This may add some pressure to the market as traders look for increased weakness through the entire complex. Cash hog trade Monday is steady to $1.00 lower per cwt. Bids are scattered through the range. Open interest Friday added 1,755 positions (235,588). Spot month July fell 1,728 positions (12,950) and August slipped 1,509 positions (71,577). Cash lean index for 7/2 is $82.51 down 0.46. DTN projected slaughter for Monday is at 445,000 head.
Rick Kment can be reached at firstname.lastname@example.org
© Copyright 2018 DTN/The Progressive Farmer. All rights reserved.