All livestock markets saw active buying early Tuesday. Hog futures were able to sustain early gains, while cattle futures eroded in late-day trade.
Uncertainty over U.S.-China trade talks and announcements by both sides about plans for new tariffs have led to widespread shifts in livestock futures over the last two days. Hog futures posted triple-digit gains Tuesday as traders backed away from previous losses. Cattle futures firmed early in the session, but were unable to hold onto gains.
Cash cattle interest remained generally undeveloped Tuesday afternoon with just a few scattered asking prices seen in Texas at $120 per cwt. These are likely to hold despite the wide shifts in futures. Limited packer interest is seen in Kansas with bids at $116 per cwt Tuesday, although trade may still develop in the next couple of days. Southern trade has wrapped up midweek over the last several months, so some additional interest may be seen Wednesday.
The National Daily Direct afternoon hog report was $1.14 higher ($72-$84, weighted average $82.02) on 15,430 head sold.
Corn futures posted strong gains in active trade with July up 12 1/4 cents. The Dow Jones Index was 300 points higher with the Nasdaq up 116 points.