DTN Before The Bell-Livestock

Sluggish Trade Develops Friday

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

Mixed trade is expected to develop through the end of the week following strong support Thursday in hog markets. Sluggish trade is likely to be seen through the complex as traders may continue to focus on end-of-week positioning in both cattle and hog futures. Corn prices are steady in light trade. Stock markets are mixed, Dow Jones is 72 points lower while Nasdaq is up 21 points.


Open: Mixed. Narrow trading ranges have developed through the complex with increased support developing in nearby contracts. This may add some stability to the entire cattle markets through the end of the week, even though prices may shift in a narrow to moderate range through the session. Cash cattle markets remain quiet with activity likely to increase through the next few hours. Bids are remain in wide range from $104 to $106 live basis and $168 to $170 dressed. Asking prices still remain well above this level at $110 to $111 live and $174 and higher dressed. Open interest Thursday fell 337 positions (304,703). Spot month October contracts lost 4,555 positions (106,171) and October contracts added 1,810 positions (82,668). DTN projected slaughter for Friday is 119,000 head.


Open: 10 to 30 cents lower. Narrow losses have trickled into the feeder cattle futures early Friday morning. The overall lack of support in live cattle trade as well as uncertainty surrounding cash cattle futures, there may be some additional softness developing into the market through the end of the week. Cash index for 9/4 is listed at $150.60, down 0.02. Open interest Thursday added 352 positions (49,438).


Open: Mixed. Initial buyer support moving into the market Friday morning has quickly eroded with limited trade seen through the complex. There is additional market direction expected over the next couple of weeks, but the focus will continue to be seen in October and December contracts due to the volatility in the complex following triple-digit gains Thursday. Cash hog trade Friday is expected 50 cents to $1 higher. Bids are scattered through the range. Open interest Thursday added 447 positions (231,454). Spot month October gained fell 3,183 positions (87,266) and December added 1,934 positions (70,593). Cash lean index for 9/4 is $45.67 up 0.23. DTN projected slaughter for Friday is at 465,000 head. Saturday runs are expected at 345,000 head.

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


Rick Kment