DTN Closing Livestock Comment 10/08 16:12
Bulls Continue to Feed Cattle Board Recovery
Live and feeder contracts jumped significantly higher for the fourth
consecutive session, boosted by short covering and technical buying. Lean hog
issues settle moderately higher, supported by positive fundamentals and a lack
of selling interest.
By John Harrington
DTN Livestock Analyst
The cash cattle trade remained locked in indecision as asking prices soared
along with the board. The few bids that made it on the table seemed
embarrassingly low given the new implications of recovering futures (e.g., $118
live, $190 dressed). According to the closing report, the Iowa hog base is
$1.27 lower (albeit on a very light test) compared with the Prior Day
settlement ($63.00-$72.00, weighted average $71.63). Corn futures generally
faltered by 4 cents as traders positioned ahead of Friday's USDA crop report.
The Dow closed 138 points lower (i.e., over 17,000 for the first time since
August) and the Nasdaq improved by 19.
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