DTN Closing Livestock Comment 08/22 15:28
Cattle Futures Move Higher Tuesday on Commercial Buying Support
Strong triple-digit gains have quickly moved into the cattle complex Tuesday
based on short covering activity following strong market pressure over the last
couple of weeks. The tone of the market remains weak, although oversold market
status drew commercial traders back into the complex. Hog futures remain under
pressure as weakness in cash hogs and pork values have limited market support.
By Rick Kment
Initial cash cattle bids started to develop Tuesday at $106 in the South and
$173 in the North. It is expected that active cash trade will be delayed until
the second half of the week, and potentially until the release of the cattle on
feed report Friday. But with current bids, and aggressive asking prices of $112
in the South and $177 and higher in the North, steady money may be in order
before the week is over. According to the closing report, the national hog base
is $1.06 lower compared with the Prior Day settlement ($67.00-$71.50) weighted
average $70.66.The corn futures moved lower in light activity. September
futures were 3 cents lower Tuesday. The Dow Jones Index is 191 points higher
with the Nasdaq up 83 points.
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