DTN Closing Livestock Comment 05/21 15:48
Sharp Losses in Feeder Cattle, Lean Hog Futures Tuesday
Sharp losses in feeder cattle and lean hog futures led to concerns of
renewed market pressure. Cattle on Feed report estimates that point to sharp
placement and on-feed growth during April also created concerns.
By Rick Kment
GENERAL COMMENTS: Lean hog and feeder cattle futures saw sharp losses
Tuesday morning as traders found little to no support from meat values in the
morning reports. Additional strength in grains points to higher production
costs, adding even more bearishness to livestock markets. Cash cattle markets
remained quiet Tuesday with little to no additional direction seen from either
side. Bids and asking prices remain hard to pin down, which could delay overall
trade until later in the week. The recent shift toward Wednesday trade in the
South has some looking for both sides to become more aggressive Wednesday
morning. Recent weakness in futures trade is likely to limit cash market
support in the near future, although feedlot managers are not likely to fold
easily this early in the week. The National Daily Direct afternoon hog report
was $0.11 lower ($72-$83, weighted average $80.91) on 15,361 head sold. Corn
futures posted moderate gains in light trade with July up 5 1/4 cents per
bushel. The Dow Jones Index was 197 points higher with the Nasdaq up 83 points.
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