DTN Closing Livestock Comment 09/27 16:03

DTN Closing Livestock Comment 09/27 16:03 Lean Hog Futures Surge Higher Monday Tighter than expected hog inventory in Friday's report left traders aggressive Monday. Limit gains held through closing bell in December and February futures; this will allow expanded trading limits in lean hog contracts Tuesday, and will likely add to market volatility. Cattle futures turned lower based on larger feeder cattle placements in August. By Rick Kment, DTN Contributing Analyst GENERAL COMMENTS: Post-report fireworks in livestock trade did not disappoint Monday with lean hog futures hitting limit gains in two nearby contracts, while triple-digit losses flooded through most feeder cattle trade. Not only were traders trying to adjust for inventory changes in the industry, but production costs significantly changed given double-digit gains in corn prices Monday. Live cattle markets posted limited losses, but it is likely that more volatility will move through the livestock market and the live cattle complex, specifically, in the coming days. This could keep most traders on edge and price levels volatile during the week. Hog prices moved lower on the National Direct Afternoon Hog Report in light trade, falling $1.19 with a weighted average of $75.74 on 5,865 head. December corn is up 12 3/4 cents per bushel and December soybean meal is up $1.00 per ton. The Dow Jones Industrial Average is up 71 points and NASDAQ is down 77 points.