DTN Closing Livestock Comment 08/12 15:17

DTN Closing Livestock Comment 08/12 15:17 Cattle Futures Tumble Following Plant Fire A fire at Tyson's Garden City, Kansas, beef plant Friday pushed cattle futures limit lower. The uncertainty as to how slaughter capacity will be able to handle available cattle caused an immediate price reaction. By Rick Kment DTN Analyst GENERAL COMMENTS: Livestock and outside markets tumbled Monday with limit losses immediately flooding into all cattle contracts. Firm gains seen in hog trade based on growing fundamental and firming technical support quickly eroded in the last half of the day following widespread losses in other markets. Cash cattle trade was silent Monday as the typical showlist distribution and inventory-taking is being done. Given the overall light trade last week, packers are expected to be short-bought, but this may have little impact at this point given the price uncertainty. Until futures prices are able to stabilize, it is likely that packers and feedlot managers will remain unwilling to put forth any bids or asking prices. How Tyson and other processors distribute the workload around the system following the fire at Tyson's plant Friday will take time, but will be a major indication of where cattle prices will go in the coming days and weeks. The National Daily Direct afternoon hog report was $2.02 lower ($62 to $72, weighted average $68.85) on 7,847 head sold. Corn futures closed limit lower following the bearish USDA report with September down 25 cents. Stock markets were lower in light trade with the Dow 420 points higher and the NASDAQ down 111 points.