DTN Closing Livestock Comment 12/18 16:49
18 Dec 2015
DTN Closing Livestock Comment 12/18 16:49 Oversold Cattle Futures Explode With Limit Gains Live and feeder cattle futures settled up the limit, powered by aggressive short-covering and ideas that extreme market lows were due for a correction. On the other hand, lean hog contracts finished moderately higher, supported by late-week short-covering and spillover buying from the cattle complex. By John Harrington DTN Livestock Analyst GENERAL COMMENTS: The cash cattle trade was at a standstill Friday with buyers and sellers apparently content with country movement earlier in the week. According to the closing report, the Iowa hog base closed $0.19 lower compared with the Prior Day settlement ($46.00-$50.75, weighted average $49.02). From Friday to Friday, livestock futures scored the following Changes: Dec LC, Off $1.30; Feb LC, Off $0.73; Jan FC, Off $3.37; Mar FC, Off $2.17, Dec LH, Off $3.93 Feb LH, Off $2.65. Corn futures closed fractionally higher, supported by a weaker dollar and significant gains in the bean market. Wall Street put in a tough day with traders troubled by low oil prices and economic prospects for 2016 in general. The Dow closed 367 point lower, with the Nasdaq off 79.