DTN Closing Livestock Comment 07/28 17:21
Oversold Cattle Futures Surge Higher
Live and feeder cattle contracts settled sharply higher with the help of
aggressive short covering and tentative ideas of a seasonal bottom. Lean hog
futures generally followed suit, closing solidly higher thanks to spillover
buying and reports of higher cash sales off finishing floors.
By John Harrington
DTN Livestock Analyst
Feedlot country remained extremely quiet with just a small handful of
starter bids evident in Kansas (i.e., $143). Some asking prices were expressed
around $148 in the South and $236-plus in the North. According to the closing
report, the Iowa hog base was $2.25 higher compared with the Prior Day
settlement ($69.00-$79.00, weighted average $76.40). Corn futures bounced
several cents higher linked to short covering and profit taking, a fairly
modest recovery given the abuse of the last week or so. The stock market closed
higher as investors found encouragement from some recovery in oil prices and
Chinese stocks. The Dow closed 189 points higher with the Nasdaq better by 49.
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