DTN Before The Bell-Livestock

GENERAL COMMENTS

Limited activity is seen in cattle markets, keeping markets mixed in a very narrow range. The overall shift higher in hog trade is helping to add end of the week support to the entire complex. Corn markets are higher in light early trade. Stock markets are lower. Dow Jones is 208 points lower with Nasdaq down 62 points.

LIVE CATTLE:

Open: Steady to 20 cents lower. Limited market movement is seen in cattle trade with nearby contracts holding light pressure of 5 to 10 cents per cwt. This is keeping prices through summer contracts contained given very little direction in outside markets as well as limited fundamental market moves. Cash cattle bids are seen in most areas although current bids are well below asking prices as live bids are seen at $115 while $185 per cwt is covering the dressed bids at this point. It may be late in the day before active trade develops. Asking prices are seen from $121 to $122 live and $190 dressed. Open interest Thursday added 5,324 positions (347,228). Spot month December contracts lost 44 positions (11,283) and February contracts added 866 positions (135,290). DTN projected slaughter for Friday is 117,000 head.

FEEDER CATTLE:

Open: Mixed. Limited activity is seen through the entire feeder cattle futures with most contracts hovering in a narrow single digit range. The expectation is that additional market direction will develop through the end of the week, but with very limited interest likely to be seen through the next few hours and prices still hovering in a directionless sideways pattern, the overall complex remains focused more on price stability than market shifts. Cash index for 12/11 is listed at $144.97 up $0.01. Open interest Thursday gained 675 positions (49,622).

LEAN HOGS:

Open: Steady to $1.60 higher. Gains have quickly redeveloped through the entire lean hog complex with prices shifting in a moderate to wide range. December contracts are getting ready to retire, allowing for price to hover in a narrow trading range, while front month February futures have rallied higher with $1.60 per cwt gains. The nervousness in outside markets through the week has been offset by end of the week support through the entire complex. Cash hog trade is steady to $1.00 lower. Most bids are steady. Open interest added 1,052 positions (212,680). Spot month December fell 674 positions (12,531) and February added 693 positions (78,602). Cash lean index for 12/11 is $55.54 down 0.44. DTN projected slaughter for Friday is at 472,000 head. Saturday runs are expected at 225,000 head.

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

(BAS)

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