DTN Early Word Opening Livestock 10/02 06:23
Cattle Could Continue to Sink
Live cattle 30 to 40 lower, feeder cattle 25 to 50 lower, and lean hogs 60
to 80 lower.
By Darin Newsom
DTN Senior Analyst
The Dow Jones Industrial Average closed 12.69 points lower Thursday at
16,272.01. The NASDAQ Composite was up 6.92 points at 4,627.08. DJIA futures
were 60 points higher overnight. Asian markets were mixed with the Nikkei up
2.71 points at 17,725.13. European markets were mostly higher. The U.S. dollar
index was up 0.121 at 96.306. Crude oil was $0.51 higher at $45.25 while Brent
crude was $0.15 higher at $47.84. December gold was $8.70 lower at $1,105.00.
Malaysian palm oil futures were mostly lower. December corn was 2 cents lower,
November soybeans were 3 cents lower, and December Chicago wheat was 3 cents
lower during CME Globex trade.
Live cattle tried to rally Thursday but failed. Strong commercial selling
was indicated by the sharp downturn in both the October to December and
December to February spreads. This activity would indicate pressure in the cash
market again Friday. Given that futures were on the defensive at Thursday's
close it would not be surprising to see follow-through selling on Friday's
open. However, recent weeks have seen live cattle find support from pre-weekend
short-covering, possibly leading to a higher close Friday.
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