DTN Closing Livestock Comment 10/01 15:50
Midweek Trading Experience Bullish Explosion in Cattle Futures
Live and feeder cattle contracts blasted sharply higher, once again posting
new all-time records with the help of technical buying and general cash
optimism. Lean hog futures settled mostly higher with Feb and April gaining
significant ground on both nearbys and deferreds.
By John Harrington
DTN Livestock Analyst
Cattle buyers didn't even bother with token bids today, understandably
concluding that bullish-minded feedlot margins wouldn't bother giving them the
time of day (not with futures surging into the either). Some asking prices were
raised to $165-plus in the South and $255-$260 in the North. According to the
closing report, the Iowa hog base was $0.13 lower compared with the Prior Day
settlement ($96.00-$109.00, weighted average $108.71). Corn futures settled
fractionally higher, modestly supported by midweek short covering and profit
taking. Equities declined sharply at midweek as investors fretted global
concerns, mixed economic data and earnings ahead. The Dow closed 238 points
lower with the Nasdaq down by 71.
Get your local Cash Bids emailed to you each morning from DTN – click here
to sign up for DTN Snapshot.