DTN Closing Livestock Comment 07/31 16:15
Cattle Pits Crash in Face of Outside Markets
Live and feeder cattle futures closed sharply lower with limit losses
suffered in the latter. The lean hog pit opened higher but closed mostly lower,
pressured late by spillover selling from the cattle pit as well as bearish
vibes rumbling from outside markets.
By John Harrington
DTN Livestock Analyst
Besides a few scattered bids in parts of the North (e.g., $255-259), the
cash cattle trade was a non-event. Significant trade volume will be postponed
until sometime Friday. Asking prices remained firm at $169-170 in the South and
$265-270 in the North. According to the closing report, the Iowa hog base is
.42 higher compared with the Prior Day settlement ($111.00-$124.00, weighted
average $121.49). The corn trade sank another 3-4 cents lower, checked by
disappointing export sales and generally positive growing crop conditions.
Equities imploded on Thursday with the Dow and S&P 500 posting their first
monthly drop since January. Wall Street investors worried about Europe's
economy, an Argentine default, and a jump in U.S. labor costs. The Dow closed
317 points lower with the Nasdaq off by 93.
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