DTN Closing Livestock Comment 10/02 15:40
Beef Futures Close Tough Week With Short-Covering Gains
Live and feeder cattle futures closed significantly higher, supported by
short covering and the correction of oversold charts. Lean hog contracts
settled with solid progress thanks to generally friendly fundamentals that seem
to be trumping seasonal bearishness.
By John Harrington
DTN Livestock Analyst
The cash castle trade was very slow through the day with both sides
admitting to be confused regarding the real value of live inventory. Both
futures and the wholesale beef trade tried to stabilize a bit right before the
weekend. But few have a good handle on market prospects as we move toward the
first full week of October. According to the closing report, the Iowa hog base
is $0.13 higher compared with the Prior Day settlement ($62.00-$73.00, weighted
average $71.14). For the most part, corn futures closed fractionally lower
through a market round that was both lightly traded and listless. From Friday
to Friday, commodities marked the following changes: October live, off 1,063
points; December live, off 563; October feeder, off 510; November feeder, off
708; October hogs, up 147; December hogs, off 40; December corn, unchanged.
U.S. stocks closed more than 1% higher, recovering from an initial decline of
more than 1.5%, as investors digested higher oil prices and a
weaker-than-expected jobs report (i.e., an increase of only 142,000 jobs). The
Dow closed 200 points higher with the Nasdaq better by 83.
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