DTN Before The Bell-Livestock

GENERAL COMMENTS

Extremely limited activity is seen early Monday morning with traders focusing on sluggish market direction. This may add some additional softness to the complex as traders shift prices generally lower due to limited interest. Corn markets are fractionally higher in light early trade. Stock markets are lower. Dow Jones is 155 points lower with Nasdaq down 32 points.

LIVE CATTLE:

Open: Mixed. Initial trade remains sluggish Monday morning. The wide triple-digit market swings in both directions through the end of last week has created some market uncertainty. Although the firming tone of the market remains the focus of many traders, the ability to hold support lvels of $119 per cwt in June futures is important to maintain follow-through buying interest during early April. Limited trade is likely to be seen through most of the morning, although traders seem to be willing to hold single-digit moves in most contracts. Cash cattle interest should remain sluggish with bids and asking prices not likely until Wednesday or later. Show list distribution and inventory taking is likely to be the main focus during the entire day Monday. Open interest Friday fell 1,477 positions (443,014). Spot month April contracts lost 2,484 positions (29,551) and June contracts fell 2,732 positions (199,434). DTN projected slaughter for Monday is 118,000 head.

FEEDER CATTLE:

Open: Mixed. Extremely narrow trading ranges are seen early Monday morning with prices hovering from 30 cents lower to 40 cents higher. The focus on increased buyer support may continue to develop as the morning continues, but traders may find themselves stuck in a narrow to moderate range through the first half of the week. Cash index for 4/3 is $142.88 up $0.44. Open interest Friday fell 679 positions (48,929).

LEAN HOGS:

Open: Steady to $1 Lower. Limited pressure is trickling into lean hog futures early Monday morning as the weekend break seemed to cause trades to take the foot off the accelerator just a bit. Narrow losses are seen in nearby contracts early in the session, leaving most to believe that this softness is more about market adjustments than a change in direction. This could add even more market shifts later in the week based on expectations and news about any China deal. Cash hog trade is called 50 cents lower to $1.00 higher. Most bids are expected steady. Open interest added 815 positions (285,489). April fell 2,851 positions (15,689) and June fell 58 positions (82,423). Cash lean index for 4/3 is $78.26 up $0.56. DTN projected slaughter for Monday is 477,000 head.

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

(BAS)

Copyright 2019 DTN/The Progressive Farmer. All rights reserved.