Beef futures experience significant loss
Beef futures experienced another significant loss as the cattle complex dropped further recently, according to a Great American Insurance Group blog post citing the DTN's closing livestock comment.
According to the Great American Insurance Group article, the cattle complex's triple-digit fall was due to commercial selling, tech concerns and concern about the demand for beef.
"The cattle complex collapsed further Tuesday, falling triple digits again thanks to commercial-selling, technical concerns and beef demand worries," the article said.
The article also says the lean hog contracts that fell from a recent rally were reacting to "pressure by profit-taking" as well as "cash market discount and spillover selling" by the Cattle Board.
In the article, Great American Insurance refers to DTN livestock analyst John Harrington's general comments.
Harrington states live cattle sold recently in areas of Nebraska and Kansas for $117, is about $5 less that the previous week's five-area steer average.
"Yet trade volume was insufficient to establish a true market test," Harrington wrote in his general comments. "The corn market got hot late in the session and closed a good nickel higher. Commercial buying seemed to be the primary sponsor of Tuesday's rally. The stock market closed lower with traders responding negatively to higher interest rates."