DTN Closing Livestock Comment 08/16 15:53
Lean Hog Futures Explode Higher Thanks to Renewed Hopes for US-China Talks
Lean hog issues closed sharply higher with the first three months closing
limit up. For the most part, the cattle complex settled moderately higher,
supported by short-covering and spillover buying from lean hogs.
By John Harrington
DTN Livestock Analyst
The cash cattle trade was little more than a staring contest between bids
and asking prices (e.g., $108 bid live versus $112-$114 asking prices).
According to the closing report, the national hog base is $0.59 lower compared
with the Prior Day settlement ($40-$43, weighted average $41.54). Corn futures
closed nearly 4 cents higher, powered by encouraging export sales and spillover
enthusiasm in the bean trade regarding the possibility of revitalized trade
talk with China later this month. The stock market soared on the news U.S. and
China negotiators may soon be ready to sit down and end ongoing trade disputes.
The Dow surged by 396 points with the Nasdaq up by 32.
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