DTN Closing Livestock Comments 01/11 15:42
Feeder Futures Torpedoed by Bullish Corn Reports
Feeder cattle futures crashed with triple-digit losses, pressured by news of
greater-than-expected feed usage in the Sep-Dec quarter and sharply higher
old-crop corn prices. The lean hog pit finished with mixed prices, allowing
spring contracts to gain ground on both spot Feb and late summer issues.
By John Harrington
DTN Livestock Analyst
Cattle buyers must be on a new diet this year (and we don't mean Atkins).
They sure didn't seem interested in buying much live inventory this week.
Despite limited trade volume total coming into the week's final round of
business, packers remained very caution in terms of procurement. The number of
negotiated sales was limited with $126 paid again in parts of Texas (steady
with Thursday but $2 lower than last week) and $201-$203 paid in parts of
Nebraska, steady to $1 lower than Thursday and $3-$5 lower than last week).
According to the closing report, the Iowa hog base closed $1.13 lower compared
with the Prior Day settlement ($76.00-$86.25, weighted average $82.65).
Old-crop corn futures closed 8-10 cents higher, supported by the lower of the
corn carryout. But new-crop contracts sagged under ideas of expanded plantings
ahead and commercial selling interest, closing off 5-7 cents. The stock market
finished largely unchanged in lackluster trading as investors remained on the
sidelines ahead of next week's flurry of earnings reports. Still, major indexes
pulled off their second-straight weekly gain. The Dow closed 17 points higher
with the Nasdaq up 3.
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*Disclaimer: The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.