DTN Midday Livestock Comments 01/18 11:24
Light Volume Seen Friday
Limited market activity is seen through the complex with limited price
pressure redeveloping in the cattle complex. Hog markets have posted firm gains
through early morning trade Friday.
By Rick Kment
Follow-through pressure in live cattle futures complex although light buyer
support is attempting to step back into the complex. Light volume is seen
through the complex with traders focusing on end of the week positioning in
front of the long holiday weekend as markets will remain closed Monday for the
Martin Luther King holiday. Corn markets are lower in light early trade. Stock
markets are higher. Dow Jones is 123 points higher with Nasdaq up 20 points.
Open: Steady to $1 lower. Light pressure is slowly moving into the live
cattle complex with nearby contracts holding a loss of 62 cents per cwt. There
is growing stability seen through deferred contracts as traders look for
increased market direction while trying to bring stability to the complex. Cash
cattle activity has entered the home stretch with bids unavailable so far
Friday morning. Asking prices remain near $128 and higher live and $200
dressed. Packer interest will improve through the day, but it could be late in
the day before most of the business is done. Open interest Thursday gained 266
positions (388,817). Spot month February contracts slipped 1,256 positions
(65,876) and April contracts added 502 positions (151,166). DTN projected
slaughter for Friday is 118,000 head.
Open: Steady to 50 cents lower. Limited pressure is redeveloping through the
complex with nearby contracts holding steady prices in front month January
contracts, while March and April contracts are holding 40-cent losses. There is
increased pressure likely to be seen through the morning, although price
stability is expected to be the focus through the end of the session. Cash
index for 1/16 is listed at $143.09 down $1.10. Open interest Thursday gained
345 positions (50,755).
Open: Steady to $0.50 higher. Firm early morning buying has moved into lean
hog futures trade as traders focus on squaring positions at the end of the
week. With markets closed Monday, traders are trying to adjust for the long
holiday weekend. This may spark some additional market support through the next
couple of hours. Cash hog trade is $1 lower to 50 cents higher. Most bids are
steady. Open interest added 1,149 positions (205,781). February fell 2,484
positions (33,766) and April added 3,260 positions (79,598). Cash lean index
for 1/16 is $58.18 up 0.16. DTN projected slaughter for Friday is 460,000 head.
Saturday runs are expected to be 150,000 head.
Rick Kment can be reached at firstname.lastname@example.org
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