Strong triple-digit gains have quickly moved into the cattle complex Tuesday based on short covering activity following strong market pressure over the last couple of weeks. The tone of the market remains weak, although oversold market status drew commercial traders back into the complex. Hog futures remain under pressure as weakness in cash hogs and pork values have limited market support.
Initial cash cattle bids started to develop Tuesday at $106 in the South and $173 in the North. It is expected that active cash trade will be delayed until the second half of the week, and potentially until the release of the cattle on feed report Friday. But with current bids, and aggressive asking prices of $112 in the South and $177 and higher in the North, steady money may be in order before the week is over.
According to the closing report, the national hog base is $1.06 lower compared with the Prior Day settlement ($67.00-$71.50) weighted average $70.66.
The corn futures moved lower in light activity. September futures were 3 cents lower Tuesday. The Dow Jones Index is 191 points higher with the Nasdaq up 83 points.