Light buyer support is trickling into nearby
livestock futures as traders focus on rebuilding a sense of stability
following the aggressive losses which developed during the week. Corn
markets are lower in light early trade. Stock markets are higher, Dow
Jones is 22 points higher while Nasdaq is up 52 points.
LIVE CATTLE:
Open: Mixed. Light nearby buyer support is
slowly trickling into the complex during the first few minutes of trade.
This has posted 30-to-35-cent gains in remaining 2018 contracts, while
the rest of the complex is holding narrow losses. The overall direction
in the complex continues to focus on trying to build a sense of
stability in nearby and deferred trade. With October futures holding
just above $112 per cwt, traders seem to be finding this sense of
firmness following previous market pressure. Cash cattle markets are
expected to become more defined through the morning, although bids
remain undeveloped at this point Thursday. The light trade that trickled
into the North at $174 per cwt dressed basis may bring additional
direction to the complex. Both packers and feedlot managers will closely
focus on early futures activity as well as major developments in
outside trade. Most cash cattle trade is expected to be pushed off until
Friday, especially activity in the South. Open interest Wednesday
liquidated 5,528 positions (335,962). Spot month October contracts lost
3,470 positions (14,650) and December contracts slipped 1,692 positions
(125,535). DTN projected slaughter for Thursday is 119,000 head.
FEEDER CATTLE:
Open: Mixed. Light activity is seen in cattle
trade following the pullback through the week. Nearby gains have slowly
but steadily trickled into the complex, but the pressure in deferred
markets seems to be offsetting this sense of renewed optimism. There is
growing movement through the entire cattle market to try to establish
market stability over the next couple of trading sessions. Cash index
for 10/9 is listed at $158.38, down 0.07. Open interest Wednesday fell
421 positions (56,926).
LEAN HOGS:
Open: Mixed. Lean hog futures have traded mixed
to mostly lower early Thursday morning with very limited support seen
through the entire complex. December contracts are leading the complex
lower with a $1.70 per cwt, and with this move have broken through
September support levels. The potential for additional underlying
softness develops through the rest of the week based on weakness in cash
values developing. Cash hog trade Thursday is expected steady to $2
lower. Most bids are $1 to $2 Lower. Open interest Wednesday added 161
positions (228,479). Spot month October fell 1,144 positions (12,525)
and December slipped 837 positions (100,580). Cash lean index for 10/9
is $69.34 up 0.01. DTN projected slaughter for Thursday is at 472,000
head. Saturday runs are expected at 166,000 head.
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