DTN Closing Livestock Comment 09/01 16:13
Cattle Futures Implode Thanks to Outside Markets
Live and feeder futures settled sharply lower, torpedoed by aggressive long
liquidation triggered by renewed China worried and major stock market losses.
Yet lean hog contracts closed no worse than mixed with Dec and Feb losing
ground to spot Oct and far deferreds.
By John Harrington
DTN Livestock Analyst
Feedlot country remained dead quiet with just a few starter bids scattered
across the production area (e.g., $144 in the South; $222 in the North). Asking
prices were poorly defined with sellers confused and frustrated by the board's
deepening discount. Some steers and heifers were priced around $148-$150 in the
South and $230 to $232-plus in the North. According to the closing report, the
Iowa hog base is $0.87 lower compared with the Prior Day settlement
($65.00-$71.50, weighted average $72.50). Corn futures sank generally 6-7 cents
lower, toppled by general commodity weakness and signs of solid late-season
crop development. Equities crashed as continued signs of weakness in China and
concerns about the Federal Reserve weighed heavily on investor psychology. The
Dow plunged 469 points lower with the Nasdaq collapsing by 140.
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