Cattle and hog futures trade faced significant pressure Tuesday. Despite mixed price movements in most cattle trade Tuesday morning, the lack of buyer interest pressured the market late in the day.
Cash cattle trade was light in all areas. Live cattle in the South sold at $117 to $118 per hundredweight (cwt), while dressed deals in the North are reported at $188 per cwt. These prices are $3 to $4 per cwt lower. Much of the trade activity was likely directed at attractive basis levels due to the quick erosion of futures trade. It will be interesting to see whether this price movement sets the tone of the market through the week or if packers and feeders will regroup later in the week as they continue to focus on the movement in futures trade.
According to the closing report, the national hog base is $1.02 lower compared with the Prior Day settlement ($43-$48) weighted average $46.09.
The corn futures are higher in light activity. May futures were 1 1/4 cent higher Tuesday. The Dow Jones Index is 339 points higher with the Nasdaq up 65 points.