DTN Closing Livestock Comment 01/17 15:29
Feeder Cattle Weaken
Sharp losses developed in nearby feeder cattle trade, sparking additional
softness through the entire cattle complex. This could lead to additional
liquidation through the next couple of weeks.
By Rick Kment
GENERAL COMMENTS: A bearish market tone swept through feeder cattle futures
trade Thursday, which have been struggling to keep up with the strong moves in
the live cattle complex all week. January feeder cattle futures posted
aggressive triple-digit losses, sparking underlying pressure in all cattle
trade. Hog markets tried to stabilize Thursday, although most contracts eroded
late in the trading session. Cash cattle activity remains in slow gear with
just a few bids redeveloping at $197 dressed basis in Nebraska. Asking prices
are more evident, but getting little to no attention at this point. Cattle are
prices at $128 and higher live, and $200 to $203 dressed. Trade is expected to
hold off until Friday at this point. According to the closing report, the
national hog base is $0.33 lower ($46-$53, weighted average of $51.44). Corn
futures are higher in light activity. March futures were 6 cents higher. Dow
Jones Index is 142 points higher with Nasdaq up 44 points.
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