DTN Closing Livestock Comments 12/11 15:50
Cattle Futures Settle Modestly Higher
Live and feeder contracts finished modestly higher for the most part,
cautiously supported by midweek short covering and recent cash premiums. On the
other hand, the lean hog pit closed on a mixed basis with nearby issues losing
ground on the far deferreds.
By John Harrington
DTN Livestock Analyst
A few cattle buyers threw out some opening bids today (e.g., $129 in the
South, $206 in the North), but for the most part, packer appetite remained
poorly defined. Some showlists were priced $134 in the South and $210-$212 in
the North. According to the closing report, the Iowa hog base compared with the
Prior Day's closing weighted average is $1.21 higher ($70.00 to $80.00,
weighted average $78.63). Corn futures settled 2-3 cents higher, supported by
short covering and technical buying. Stocks dropped sharply for a second
session with the S&P 500 and Nasdaq seeing their biggest losses in nearly five
weeks. Wall Street turned cautious as the provisional budget deal in Washington
raised speculation that the Fed could pull back on its stimulus program soon.
The Dow closed 129 points lower with the Nasdaq down by 56.
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