Nearby cattle futures broke through current support levels Tuesday as traders continued to test long-term thresholds. The concern that fundamental weakness will add selling pressure may cause additional market losses.
Cash cattle activity remains generally sluggish Tuesday. A few bids started to develop early in the day in all areas at $125 to $126 live and $204 dressed. The recent pressure in futures trade is creating uncertainty in cash markets, although bids are still well under early asking prices.
Asking prices are developing at $128 to $129 live basis and $208 and higher dressed. There light trade developed late in the day in the South at $126 per hundredweight (cwt). This is generally $1 per cwt lower than last week. Trade will likely continue to trickle into the market through the week similar to last week.
According to the closing report, the national hog base is $0.68 lower compared with the prior day settlement ($51-$57, weighted average $55.73).
Corn futures are lower in light activity. May futures were 1/2 cent lower Tuesday. The Dow Jones Index is 132 points higher with the Nasdaq up 17 points.