Selling developed in hog and cattle trade midweek after grain futures shifted higher. Rising production costs and late-year demand uncertainty is leading to moderate-to-active liquidation in all livestock markets.
Rising grain futures, which mean higher production costs, led to losses in livestock futures markets Wednesday. Uncertainty also remains about trade with China as well as the strength of the U.S. economy and how it will affect domestic meat demand. Cash cattle trade started to develop in the North with prices at $114 live and $185 per cwt dressed.
There wasn’t enough trade to establish an accurate trend, but the pressure in futures likely has prompted feeders to unload cattle in the event of further late-week pressure. Bids of $112 per cwt are seen in the South, but so far, no business is reported. Asking prices are at $115 and higher live and $185 to $188 per cwt dressed.
The National Daily Direct afternoon hog report was $0.83 higher ($67-$78 per cwt, weighted average $76.03) on 21,219 head sold.
Corn futures firmed in light trade Wednesday with July up 2 cents per bushel. The Dow Jones Index was 43 points lower with the NASDAQ down 29 points.