DTN Closing Livestock Comment 08/20 15:40
Cattle Gains Hold Late Tuesday
Triple-digit gains in live cattle trade Tuesday helped to push October live
cattle back to $100 per cwt. Support also developed in lean hog futures,
helping put distance from long-term lows.
By Rick Kment
Optimism was seen across livestock trade Tuesday afternoon with all markets
posting triple-digit gains at one point or another during the session. The
ability of live cattle futures to hang onto gains helped to stimulate
additional buying across the complex at the end of the day. Cash cattle
activity remains at a standstill with no evidence of packers showing bids at
this point. The recent sharp gains in boxed beef values should push the limits
of plant production and stimulate additional cash buying. So far, asking prices
are holding at $109 per cwt in the South and $178 in the North, but only a few
bids have been reported by Tuesday afternoon with many other feedlot managers
waiting to see what shakes out from the recent futures market rally. Active
trade is expected to be delayed until the second half of the week, potentially
until Friday. The National Daily Direct afternoon hog report was $0.60 lower
($58 to $72.50, weighted average $69.18) on 14,715 head sold. Corn futures
continued to weaken on ideas that production may not be as weak as previously
thought. September corn closed 5 1/2 cents lower. Stock markets were lower in
light trade with the Dow 106 points lower and the NASDAQ down 39 points.
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