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DTN Closing Livestock Comment 06/25 16:40
Buying Redevelops Across Livestock Trade
Live cattle and lean hog futures moved higher Tuesday as traders adjusted
positions following sharp losses last week. Hog trade led the complex higher
with $1.95-per-cwt gains, potentially sparking renewed buying activity midweek.
By Rick Kment
DTN Analyst
GENERAL COMMENTS: Livestock futures moved mostly higher Tuesday with lean
hogs up by triple digits. Initial gains appeared to be due to traders covering
short positions, and then increasing buyer support throughout the session
helped to solidify those early gains. Cash cattle activity remained sluggish
Tuesday afternoon with a few token bids of $107 live basis and $174 to $175
dressed. Although asking prices are not readily available, a few cattle have
been priced in the South at $110 to $111 live basis. It is expected to be
Wednesday or later before cash trade develops. Even when it does develop,
activity could trickle in over a couple of days at the end of the week. Given
that next week is the first week of July, and a holiday week to boot, it is
uncertain just how many cattle will be purchased before the end of June. The
National Daily Direct afternoon hog report was $1.33 lower ($62-$76.50,
weighted average $72.18) on 9,751 head sold. Corn futures ended mixed Tuesday
following early gains with July up 3/4 cent per bushel. The Dow Jones Index was
179 points lower with the NASDAQ down 120 points.
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