DTN Before The Bell-Livestock

GENERAL COMMENTS

Mixed trade has developed through the morning Monday as very limited activity is seen in all livestock markets. Little market development is expected to be seen through the session due to the Federal Holiday limiting some of the financial traders that venture into commodity markets through the day. This may keep all livestock trade sluggish through the entire session. Corn markets are lower in light early trade. Stock markets are lower, Dow Jones is 36 points lower while Nasdaq is down 21 points.

LIVE CATTLE:

Open: 40 to 50 cents lower. Very light trade seen early Monday morning is focusing on the lack of volume in the market. This is keeping prices well contained in a narrow but lower market shift as traders seem reluctant to follow the support seen at the end of last week. Some of this move lower is associated with position taking following last week's shifts. But limited trade in the market could keep markets sluggish. Cash cattle interest early Monday remains undeveloped following the light to moderate trade that surfaced late last week. Show list distribution and inventory taking is expected to be the extent of activity through the Columbus Day holiday. Open interest Friday fell 2,499 positions (340,083). Spot month October contracts lost 4,339 positions (23,034) and December contracts added 37 positions (129,132). DTN projected slaughter for Monday is 117,000 head.

FEEDER CATTLE:

Open: 30 to 70 cents lower. Limited activity developed early Monday with traders focusing on the inability to bring additional softness buyer support to the table following the weekend break. Although the overall tone of the feeder cattle market remains firm, the potential for the limited volume during the Columbus Day holiday could allow for early-week pressure. Cash index for 10/4 is listed at $158.18, up 0.33. Open interest Friday added 98 positions (58,414).

LEAN HOGS:

Open: Steady to 75 cents higher. Limited but firm buyer support is moving into lean hog futures trade with the overall support seen across all futures contracts following the strong rally at the end of last week. Traders continue to focus on the additional underlying buyer support moving into the market, although trade is expected to remain quiet due to the Federal Holiday. Cash hog trade Monday is expected steady to 50 cents lower. Most bids are steady. Open interest Friday added 2,127 positions (228,966). Spot month October fell 974 positions (15,127) and December added 915 positions (104,190). Cash lean index for 10/4 is $69.31 up 0.16. DTN projected slaughter for Monday is at 472,000 head.

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

(SK)

Copyright 2018 DTN/The Progressive Farmer. All rights reserved.