DTN Before The Bell-Livestock

GENERAL COMMENTS

Cattle buyers are moving to gather new showlists this morning, which of course will pretty much complete their early list of chores. Ready numbers are expected to be somewhat smaller than last week. Asking prices are not yet evident. They will no doubt be higher given Friday's cash surge. Yet much will depend upon further progress in futures. Cash hog bids in the opening round of business appear to be generally steady. The corn market is fractionally mixed in the early going in light volume. Equities are narrowly mixed at this time with the Dow up 2 points and the Nasdaq off 6.

LIVE CATTLE:

Live contracts are off to a positive start with contracts supported by short covering, technical buying, and evidence of recovering cash business. Board and cash traders will have eyes peeled for better news from the wholesale trade this week. Follow-through country spending my hinge on the ability of meat salesmen to pass on higher cattle costs to retailers and food managers. Open interest on Friday increased by 1,094 (258,586). Spot October liquidated by 2,108 (8,839) and December added 1,226 (133,199). DTN projected slaughter: 110,000.

FEEDER CATTLE:

Feeders are generally higher so far this morning with specs and commercials following the lead of their live counterparts. The discount status of the cash index could have a negative impact on the front-end here if action in the live market falters. Total commitment on Friday decreased 281 (34,336). 10/08 cash index: 184.29, up 0.96.

LEAN HOGS:

For the most part, lean hog contracts are moderately higher in the early going. Traders are generally impressed with the way pork demand has improved this fall to handle the seasonal burden of additional production and tonnage. Open interest on Friday decreased by 239 (203,282). Spot October lost 1,139 (15,315) and December declined by 875 (90,025). CME cash lean index for 10/08: 74.84, up 0.09. DTN projected slaughter: 430,000.

John Harrington can be reached at feelofthemarket@yahoo.com

Follow John Harrington on Twitter @feelofthemarket

Copyright 2015 DTN/The Progressive Farmer. All rights reserved.