DTN Closing Livestock Comment 03/31 16:54
Lean Hog Futures Benefit From Follow-Through Buying
Lean hog contracts scored decent gains for the second consecutive session
following the release of the March 1 H&P report. The cattle complex closed
under pressure thanks to long liquidation and profit taking.
By John Harrington
DTN Livestock Analyst
The cash cattle trade existed on in theory Tuesday with absolutely no buying
interest evident. Some showlists were priced around $167-$168 in the South and
$268-plus in the North. According to the closing report, the Iowa hog base
closed $0.12 lower compared with the Prior Day settlement ($49.00-$57.00,
weighted average $56.47). Corn futures closed sharply lower (i.e., generally
17-18 cents in the red) with selling tied to bearish stocks (i.e., 7.74 billion
bushels, 116 million greater than the average trade guess) and planting
intentions (i.e., 89.2 million acres, 520,000 more than expected) numbers.
Equities closed lower, giving back most of Monday's major gains, as investors
eyed mixed economic data and the end of the first quarter. The Dow closed 200
points lower with the Nasdaq off 46.
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