DTN Closing Livestock Comments 05/23 16:17
Live and Feeder Contracts Slump Back to Recent Lows
The cattle complex closed significantly lower for the second consecutive
session, pressured by long liquidation, poor buying interest, and cash
nervousness. Lean hog futures settled moderately lower thanks for profit taking
in the wake of Wednesday's rally.
By John Harrington
DTN Livestock Analyst
Cash activity in cattle country was limited to scattered sales in the North
at $202 and in the South at $124. According to the closing report, the Iowa hog
base closed .20 lower compared with the Prior Day settlement ($83.78-92.50,
weighted average $90.37). Corn futures settled generally 3-4 cents higher,
supported by stronger action in the wheat pit. The stock market closed modestly
lower, rebounding sharply in a volatile session as traders weighed better U.S.
economic data (e.g., initial jobless claims fell to 340,000 for the week ended
May 18 from 363,000 the prior week; new home sales rose) against the fears the
Fed may soon start to curtail its bond buying. The Dow closed 12 points lower
with the Nasdaq off 3.
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