DTN Closing Livestock Comment 09/25 16:48

DTN Closing Livestock Comment 09/25 16:48 Livestock Futures Rise on Widespread Buying Interest Livestock futures closed with strong gains on positive news for both cattle and hog trade. Follow-through interest early Thursday morning. By Rick Kment DTN Analyst GENERAL COMMENTS: Strong buyer support developed in both cattle and hog trade Wednesday. Nearby hog futures led the complex higher as reports of China pork purchases continue to stimulate short-term trade expectations, along with hopes that a trade deal will be reached in October meetings between the U.S. and China. Beef values gained momentum as the first round of a Japan trade agreement was finalized, focusing on growing beef movements. The lack of packer movement in cash cattle trade midweek is indicating another late week of trade. Even though asking prices have remained and are holding at $104 to $105 in the South and $170 dressed in the North, the lack of even initial token bids from packers is creating some concern about overall cash market improvement despite futures gains. Uncertainty of how many cattle need to be bought in negotiated trade before the end of the week leading into early October is adding some additional cash market instability. It is expected that at least light to moderate trade will be needed in all areas before the end of the week, but where initial bids start over the next couple of days could set the tone for weekly trade. The National Daily Direct afternoon hog report was $1.98 higher ($40-$51, weighted average $47.95) with total volume reported at 13,671 head. Corn prices remained mixed Wednesday with December down 1/2 cent. Stock markets were higher in light trade with the Dow up 162 points and the NASDAQ up 83 points.