DTN Closing Livestock Comment 06/27 16:08
Sharp Losses Redevelop in Cattle Tuesday
Pressure swept through cattle futures Tuesday, leaving traders with
unsettled concerns after limit gains pushed prices higher earlier in the week.
The volatility seen during the first two day sof this week may lead to even
more market uncertainty through the end of the week as traders close out the
month of June and second quarter.
By Rick Kment
Cash cattle trade was undeveloped late Tuesday afternoon, following
aggressive losses in futures and concern that additional widespread pressure
may continue to develop the rest of the week. A few scattered bids were noted
in Iowa at $119, but asking prices remain undeveloped in all areas. Active
trade may not be seen until after midweek. The Federal Cattle Exchange Auction
will trade Wednesday morning. This will give the first indication of cash
market activity for the week. It is uncertain just how much volume will be seen
before the holiday week. Recent futures pressure may limit sales volume.
According to the closing report, the national hog base is $0.03 lower compared
with the Prior Day settlement ($81.00-$87.00) weighted average $85.75. Corn
futures moved higher in light activity. July futures were 1/4 cent higher
Tuesday. The Dow Jones Index is 66 points down with the Nasdaq down 90 points.
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