DTN Closing Livestock Comment 08/19 16:00
Strong Hog Gains Hold Through Closing Bell
Active buying stepped back into the complex Monday morning, helping to
rekindle market support. Triple-digit gains held at closing bell in lean hog
futures despite cattle futures eroding in last minute trade.
By Rick Kment
Firm gains early in the session sparked additional market momentum and
underlying support through the entire complex. Lean hog futures closed with
triple-digit gains. Even though nearby cattle futures closed higher, late-day
pressure swept into deferred contracts, eroding early gains and causing many
traders to back away. Corn futures adjusted lower, backing away from gains late
last week. September corn futures are 6 cents lower. Stock markets are higher
in light trade. Dow Jones is 261 points higher with NASDAQ up 106 points. Cash
cattle markets remained quiet Monday following showlist distribution through
the morning. Showlists appear to be larger in all areas, which is not
surprising given the light trade over the last couple of weeks. Feeders are
looking for increased stability during the week, with the hope packers will
have more of an appetite. A few scattered asking prices in the North at $178
dressed, and $109 to $110 live. But at this point bids are undeveloped in all
areas. Cash trade is expected to be delayed until midweek or later. National
Daily Direct afternoon hog report is $0.11 lower with a weighted average of
$69.71 per cwt. Full range of $59 to $72.50 per cwt on 10,744 head sold.
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