DTN Closing Livestock Comment 08/09 15:49

DTN Closing Livestock Comment 08/09 15:49 Sharp Lean Hog Losses Soften Cattle Trade Traders once again were spooked by tumbling lean hog futures prices. October lean hog contracts posted limit losses for the second time in the last three days. Pressure was limited in cattle trade, although buyers were hard to find given the general bearish market tone. By Rick Kment, DTN Contributing Analyst GENERAL COMMENTS: Cattle futures closed lower Monday afternoon after hovering within a sideways trading range on either side of unchanged through most of the session. Limited trade activity seen in both live cattle and feeder cattle futures sparked uncertainty but potential hope, as cattle traders balanced early gains in beef values with aggressive losses in nearby hog markets. The focus on underlying meat values over the next several days will continue to be a major factor in the ability to bring buyers back to the table through the rest of the week. Lean hog futures posted aggressive triple-digit losses, as October contracts closed limit lower based on concerns that further erosion in pork prices will lead to additional liquidation. Hog prices closed lower on the National Direct Afternoon Hog Report in light to moderate trade, down $0.09 with a weighted average of $99.06 on 4,055 head. December corn is down 2 3/4 cents per bushel and December soybean meal is up $1.80 per ton. The Dow Jones Industrial Average is down 107 points and NASDAQ is up 24 points.