DTN Closing Livestock Comment 10/20 16:03
Cattle Futures Recover Wednesday
Despite early market apathy, active gains steadily moved into live cattle
and feeder cattle futures. This helped live cattle futures to test last week's
highs, creating the potential to move prices even higher at the end of the
week. Hog futures are struggling to gain buyer support, breaking through last
week's support levels.
By Rick Kment, DTN Contributing Analyst
Active buyer support actively moved into cattle trade during the last half
of the day, with increased support seen in nearby and deferred contracts.
Although traders remain concerned about short-term inventory levels burdening
the cattle market, the focus on lower supplies long term is regaining traders'
attention. Hog futures, on the other hand, are struggling to keep buyers
interested as growing concerns of demand erosion continue to pressure price
levels. Hog prices moved lower on the National Direct Afternoon Hog Report in
active trade, falling $0.04 with a weighted average of $66.93 on 9,449 head.
December corn is up 9 cents per bushel and December soybean meal is up $5.80
per ton. The Dow Jones Industrial Average is up 119 points and NASDAQ is down
DTN offers additional daily information available free through DTN Snapshot – sign up