DTN Closing Livestock Comment 09/23 15:19
Active Gains Hold as Expectations Grow
The combination of lighter cattle numbers in Friday's cattle on feed report,
and expectations that positive pork trade may develop over the near future, is
helping to solidify buying activity.
By Rick Kment
Firm buyer support developed Monday, although buyer intensity increased as
the day continued. Live cattle futures lead the complex higher with a $2.50 per
cwt rally in October contracts and $2.62 per cwt rally holding in December
trade. Hog buyers returned to the complex on the hope that renewed trade may be
seen in the near future as China remains focused on increasing pork supplies.
Corn prices shifted higher Monday. December corn futures are 2 cents higher.
Stock markets are higher in light trade. Dow Jones is 53 points higher with
NASDAQ up 9 points. Cash cattle markets remain quiet with bids and asking
prices undeveloped Monday. This early in the week, it is normal that cash
markets are undirected and quiet with no significant activity expected until
later in the week. Show lists appear to be mixed; higher in Texas, while lower
in all other areas. Given the support in futures trade, feedlot managers are
expected to increase asking prices in order to further the cash market gains
seen last week. National Daily Direct afternoon hog report is $0.46 higher with
a weighted average of $44.72 per cwt. Full range of $39 to $46 per cwt. Total
volume reported is 13,067 head.
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