DTN Closing Livestock Comment 06/30 16:30
Feeder Futures Rocket Higher Thanks in Part to Bearish Acreage Report
The cattle complex closed significantly higher, powered by triple-digit
gains throughout the feeder trade where aggressive buying seemed tied to
bearish stocks and acreage reports. Lean hog issues settled on a mixed basis
with nearbys losing more ground to deferreds.
By John Harrington
DTN Livestock Analyst
Light-to-moderate trade volume surfaced Thursday in most areas of cattle
feed country. Live sales in the South were marked at $122, $6 higher than the
previous week. Dressed deals in the North ranged from $195 to $200 (mostly
$195-196, $7-$8 higher than last week's weighted average basis Nebraska).
According to the closing report, the national hog base is $1.22 lower compared
with the Prior Day settlement ($71.50-$80.00, weighted average $78.29). Corn
futures broke hard (contracts closing 10-14 cents lower) thanks to confirmation
of much larger plantings than expected (i.e., 94.15 million acres, nearly 1.4
million more than the average guess). The June 1 stocks also proved to be
considerably larger than most were betting on (i.e., 4.72 billion bushels, 200
million more than the average guess). U.S. stocks closed higher in their
third-straight day of recovery from the post-Brexit sell-off. The Dow closed
235 points higher with the Nasdaq positive by 63.
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