DTN Before The Bell-Livestock

Cattle Futures Trading Moderately Higher in Early Rounds

(DTN photo by Nick Scalise)
GENERAL COMMENTS

While cattle country is generally quiet so far this morning, the clock is ticking for short bought packers to gather at least light to moderate slaughter numbers before breaking for the weekend. A few bids have been renewed in Nebraska at $195 dressed. Some early asking prices are around $131-plus in the South and $200-plus in the North. The cash hog trade is seeing basically steady bids in the early going. Cold temps and holiday sluggish seems to be limited receipts. On the other hand, most plants appear to have immediate slaughter needs in hand. Corn futures are 2-3 cents lower at this time tied to light volume and a general lack of buying interest. U.S. stocks are trading mostly lower Friday, weighed by a decline in Disney stock and lower oil prices. Needless to say, investors are eager to learn of preliminary Black Friday shopping results. The Dow is off 52 and the Nasdaq is down by 3.

LIVE CATTLE:

Live contracts are well supported this morning with nearby issues outperforming deferred counterparts. Bull spreading is supportive along with ideas that short bought packers will be forced to more somewhat closer to higher asking prices. Note that settlements will be marked an hour earlier than normal due to the holiday. Open interest on Wednesday increased by 1,190 (280,039). Spot December liquidated by 1,911 (47,636) and February jumped by 1,882 (116,326). DTN projected slaughter: today, 105,000; Saturday, 45,000; weekly total, 453,000.

FEEDER CATTLE:

Feeders are trading higher so far this morning, following the positive pattern in the live trade. Volume appears to be very light. Open interest on Wednesday increased by 49 (33,713). CME cash feeder index for 11/24: 172.69, up 1.14.

LEAN HOGS:

Lean issues are under pressure at this time, limited by late week profit taking and a general lack of buying interest. The board is also softened by the large loss in carcass value recorded on Wednesday's close. Open interest on Wednesday decreased by 2,563 (201,237). Spot December liquidated by 1,362 (31,845) and February lost 1,263 (90,059). CME cash lean index for 11/24: 55.64, up .14Ăź. DTN projected slaughter: today, 425,000; Saturday, 370,000; weekly total, 2,113,000.

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