DTN Before The Bell-Livestock

GENERAL COMMENTS

Firm gains have quickly developed across all livestock trade. This is helping to spark some additional underlying support in most contracts to set the tone for early October trade. Corn markets are higher in light early trade. Stock markets are higher, Dow Jones is 192 points higher while Nasdaq is up 49 points.

LIVE CATTLE:

Open: 40 to 90 cents higher. Strong gains have quickly stepped into the live cattle complex with October futures leading the complex higher with a 90 cent gain. This is moving prices well above $114 per cwt with increased commercial support quickly moving into the complex. There may be some additional underlying activity that may step into the complex over the near future, adding even more volatility through the entire complex. Additional underlying trade volume is also expected to be seen through the day Monday focusing on the direction of outside market shifts. Open interest Friday gained 3,097 positions (331,189). Spot month October contracts lost 1,249 positions (36,048) and December contracts added 1,694 positions (124,974). DTN projected slaughter for Monday is 119,000 head.

FEEDER CATTLE:

Open: 50 to 70 cents higher. Gains are seen within a tight trading range early Monday morning as follow-through buyer support has quickly flooded back into the market. With traders now looking at a new month and quarter, there is more incentive for buyers to quickly move back into the market over the next few trading sessions. The focus on continued firm support in live cattle trade is also helping to spark some underlying market support through the entire complex. Cash index for 9/27 is listed at $156.89, up 0.76. Open interest Friday added 854 positions (56,956).

LEAN HOGS:

Open: 40 to 90 cents higher. Moderate to firm buyer support is quickly moving into the Lean hog futures complex. This is helping to spark some additional underlying buyer support across the entire complex, as traders look for increased follow through buying activity following aggressive end of month support seen Friday. Cash hog trade Monday is expected steady to weak. Most bids are 50 cents lower. Open interest Friday gained 6,753 positions (224,556). Spot month October fell 1,073 positions (22,587) and December gained 5,502 positions (107,308). Cash lean index for 9/27 is $66.45 up 1.11. DTN projected slaughter for Monday is at 450,000 head.

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

(SK)

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