The cattle complex collapsed further Tuesday, falling triple digits again thanks to commercial-selling, technical concerns and beef demand worries. Lean hog contracts aggressively retreated from Monday’s rally, pressured by profit-taking, the cash market discount and spillover selling from the cattle board.
A few thousand live cattle sold Tuesday afternoon in parts of Nebraska and Kansas at $117, roughly $5 lower than last week’s 5-area steer average. Yet trade volume was insufficient to establish a true market test. According to the closing report, the national hog base is $1.52 higher ($56.00-$65.50, weighted average $64.37).
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. The Dow settled as much as 193 points lower with the Nasdaq off by 59.