DTN Closing Livestock Comment 08/28 16:37
Cattle Futures Slam Sharply Higher
Live and feeder cattle futures closed sharply higher for the most part
thanks to aggressive short-covering and ideas of firmness of pre-holiday cash.
On the other hand, the lean hog pit settled narrowly mixed with traders torn
between defensive fundamentals and spillover buying from the cattle complex.
By John Harrington
DTN Livestock Analyst
It looks like cattle buyers will be working on Friday after all. Little was
accomplished today in terms of procurement. A few pens in the North traded as
high as $243, but for the most part the market simply wasn't tested. Most
packers stayed far away from asking prices of $155-plus in the South and
$245-plus in the North. According to the closing report, the Iowa hog base
(very lightly tested) is $1.91 lower compared with the Prior Day settlement
($89.00-$91.00, weighted average $90.60). Corn futures settled 4-5 cents lower,
supported by buying in the wheat trade that was sparked by reports of Russian
troops in Ukraine. The stock market declined as concerns about Ukraine trumped
upbeat reports on the U.S. economy. The Dow closed 42 points lower with the
Nasdaq off 11.
Get your local Cash Bids emailed to you each morning from DTN – click here
to sign up for DTN Snapshot.