Sharp losses in feeder cattle and lean hog futures led to concerns of renewed market pressure. Cattle on Feed report estimates that point to sharp placement and on-feed growth during April also created concerns.
Lean hog and feeder cattle futures saw sharp losses Tuesday morning as traders found little to no support from meat values in the morning reports. Additional strength in grains points to higher production costs, adding even more bearishness to livestock markets. Cash cattle markets remained quiet Tuesday with little to no additional direction seen from either side. Bids and asking prices remain hard to pin down, which could delay overall trade until later in the week.
The recent shift toward Wednesday trade in the South has some looking for both sides to become more aggressive Wednesday morning. Recent weakness in futures trade is likely to limit cash market support in the near future, although feedlot managers are not likely to fold easily this early in the week.
The National Daily Direct afternoon hog report was $0.11 lower ($72-$83, weighted average $80.91) on 15,361 head sold.
Corn futures posted moderate gains in light trade with July up 5 1/4 cents per bushel. The Dow Jones Index was 197 points higher with the Nasdaq up 83 points.