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DTN Closing Livestock Comment 02/19 15:53
Limit Losses Set Hog Market Tone
Any sense of market stability last week in hog trade quickly vanished at
opening bell Tuesday as aggressive losses quickly flooded the market, leading
to limit-lower closes in all spring and summer contracts.
By Rick Kment
DTN Analyst
GENERAL COMMENTS: Bearishness continues in the hog market with traders
quickly running for the exits Tuesday morning as technical support quickly
broke down and prices moved through long-term support levels. This shift lower
swiftly led to unrestricted selling activity until markets were abruptly
stopped by daily trading limits. Even though no new developments or news
appeared in cattle trade, buyers jumped into the market, avoiding panic selling
in the hog complex. Cash cattle activity is undeveloped Tuesday afternoon. For
the most part, bids are quiet, with the only bid seen coming from a regional
packer in Nebraska bidding $198 per cwt. Given the stability in cash prices, as
well as futures gains, feedlot managers will not likely consider anything short
of steady money at this point. The National Daily Direct afternoon hog report
is $0.02 lower ($44.50-$49, weighted average $48.23) on 10,923 head sold. Corn
futures are lower in light activity. March futures fell 5 cents per bushel. Dow
Jones Index is 73 points higher with Nasdaq up 33 points.
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