DTN Closing Livestock Comment 08/21 15:42
Cattle Gains Hold in Late-Day Trade
Buyer support moved into cattle trade again Wednesday, further pushing
prices away from recent lows. Hog futures were unable to hang onto early
support as bearish fundamentals continue to weigh on the market.
By Rick Kment
Lean hog futures saw a strong daily reversal Wednesday, quickly pulling back
from early gains and raising doubts about follow-through support through the
end of the week. Cattle futures saw moderate-to-firm support with active gains
in feeder cattle trade leading the complex higher. Cash cattle markets remained
undeveloped with packers unwilling to actively show bids through midday.
Although asking prices still remain available in most areas at $108 live in the
South and $178 dressed in the North, there continues to be a lot of uncertainty
as to whether and how much cash markets will be able to improve despite the
aggressive rally in beef values. Trade may be delayed until sometime Friday as
both sides appear to be unwilling to actively move too quickly in this volatile
market structure. The National Daily Direct afternoon hog report was $1.41
lower ($58 to $71.50, weighted average $67.65) on 12,097 head sold. Corn
futures inched higher with September up 3 cents. Stock markets are higher in
light trade with the Dow up 241 points and the NASDAQ up 71 points.
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