DTN Before The Bell-Livestock
Livestock Futures Trade Mixed in Opening Round of Business
The cash cattle market is typically quiet this morning with neither bids nor asking prices well defined. Given the bullish leadership of futures last week, feedlot managers will be reluctant to price showlists too early, waiting instead for the board to drop more hints regarding packer spending potential. That said, some cattle are priced around $135 in the South. Hog buyers appear to be basically staring work this morning with steady bids. After opening lower on typical harvest pressure, corn futures have recovered thanks to short covering and profit taking. Most issues are 1-2 cents higher at this time. Equities are under moderate pressure as investors weigh fresh indications of slowdown in China's economy and await key third-quarter earning reports. The Dow is 45 points lower so far this morning with the Nasdaq down by 11.
LIVE CATTLE:
Live futures are mixed in the early rounds with spot October gaining more ground on the rest of the field. Recent cash strength has sparked a new popularity in bull spreading activity. Delivery intentions remain minimal with no new posting unveiled on Monday (26 loads were retendered at $1 and then 25 were demanded). Open interest on Monday increased by 985 (259,558). Spot October liquidated by 1,296 (7,543) and December added 381 (133,568). DTN projected slaughter: 112,000.
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
FEEDER CATTLE:
Feeders are mirroring the same pattern as the live trade at this time with the spot contract higher and most deferreds some lower. Watch for this market to take its cues from live cattle as well as the corn market. Total commitment on Monday increased by 95 (34,430). 10/09 cash index: 184.00, off 0.29.
LEAN HOGS:
Bull spreaders are making their mark here in the opening rounds, pushing Oct through Feb moderately higher while modestly pressuring the deferreds lower. Spot October is scheduled to expire tomorrow with heir apparent December still reluctant to move toward the cash index. Open interest on Monday increased by 630 (203,878). Spot October lost 613 (14,702) and December declined by 262 (89,749). CME cash lean index for 10/09: 74.77, off 0.07. DTN projected slaughter: 425,000.
John Harrington can be reached at feelofthemarket@yahoo.com
Follow John Harrington on Twitter @feelofthemarket
John Harrington can be reached at feelofthemarket@yahoo.com
Follow John Harrington on Twitter @feelofthemarket
Copyright 2015 DTN/The Progressive Farmer. All rights reserved.
