Pressure in most commodity markets Wednesday following the announcement of additional tariffs on $200 billion worth of Chinese products left livestock futures searching for support. This pushed livestock markets sharply lower as concern grows about beef and pork demand.
Cash cattle trade remained sluggish with just a few cattle selling at $175 in the North. The current amount of cattle traded is still not enough to establish a good market trend, but given the defensiveness of the complex, the steady-to-weak market tone may be as good as it gets through the rest of the week. Both sides are expected to become more aggressive over the next couple of days, but active trade may not develop until Friday.
The Fed Cattle Exchange Auction on Wednesday listed a total of 365 head all for Kansas, zero actually sold, 365 head were unsold and zero head listed as PO. All cattle listed were set for 1-9 day delivery.
According to the closing report, the national hog base is $0.30 lower compared with the Prior Day settlement ($68-$76.99, weighted average $75.88).
Corn futures were lower in light activity with July futures 8 cents lower Wednesday. The Dow Jones Index closed 178 points lower with the Nasdaq down 31 points.