Friday Morning Livestock Market Summary - Buyers Move Into Livestock Trade

GENERAL COMMENTS

Moderate to strong gains have quickly moved back into all livestock trade Friday morning. The continued movement in live cattle futures is focusing on the underlying support in cash cattle trade developing during the week with increased long-term support sparked that cattle supplies are expected to tighten over the coming months. Hog futures has regained previous week momentum, although current volume remains extremely limited at this point. Corn prices are lower in limited early trade. Stock markets are mixed. Dow Jones is 20 points higher with NASDAQ down 38 points.

LIVE CATTLE:

Open: 40 to 80 cents higher. Strong underlying support is moving into live cattle trade. Although limited moves may continue to develop through the end of the week as prices have backed away from initial market moves, the focus will be driven as increased cash cattle trade is seen. Cash cattle trade is starting to develop early Friday morning following trade in the North Thursday which pushed prices higher. Limited to moderate trade is reported in Texas Friday morning at $103 per cwt. This is $2 per cwt higher than last week, and confirms price gains in both North and South for the week. It is likely that the current trade may be able to set the tone for the rest of the week with prices $2 to $3 per cwt higher. Open interest Thursday fell 68 positions (323,813). Spot month October contracts fell 2,705 positions (41,254) and December contracts slipped 218 positions (140,440). DTN projected slaughter for Friday is 116,000 head.

FEEDER CATTLE:

Open: Steady to 60 cents higher. Light buyer support has slowly returned to the feeder cattle complex. The underlying support in live cattle trade has helped to spark additional follow through momentum in feeder cattle trade. This may bring additional bullish market momentum through the end of the week, despite limited overall volume expected through the end of the week. Cash index for 9/25 is $141.13, up 1.10. Open interest Thursday fell 659 positions (45,043).

LEAN HOGS:

Open: Steady to $1 Higher. Moderate to firm gains have quickly flooded into lean hog futures with spot month October contracts leading the complex higher with 80 cent gains. The focus on continued buyer support based on long term buying from China has redeveloped despite a slow couple of days, but the expectations of continued sales to China over the near future is expected to develop over the near future. Cash hog trade is called steady to $1 higher. Bids are evenly scattered through the range. Open interest added 901 positions (260,840). October fell 1,259 positions (22,554) and December added 681 positions (100,634). Cash lean index for 9/25 is $54.72 up 0.05. DTN projected slaughter for Friday is 485,000 head. Saturday runs have increased to 287,000 head.

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