Live cattle and lean hog futures moved higher Tuesday as traders adjusted positions following sharp losses last week. Hog trade led the complex higher with $1.95-per-cwt gains, potentially sparking renewed buying activity midweek.
GENERAL COMMENTS: Livestock futures moved mostly higher Tuesday with lean hogs up by triple digits. Initial gains appeared to be due to traders covering short positions, and then increasing buyer support throughout the session helped to solidify those early gains.
Cash cattle activity remained sluggish Tuesday afternoon with a few token bids of $107 live basis and $174 to $175 dressed. Although asking prices are not readily available, a few cattle have been priced in the South at $110 to $111 live basis. It is expected to be Wednesday or later before cash trade develops.
Even when it does develop, activity could trickle in over a couple of days at the end of the week. Given that next week is the first week of July, and a holiday week to boot, it is uncertain just how many cattle will be purchased before the end of June.
The National Daily Direct afternoon hog report was $1.33 lower ($62-$76.50, weighted average $72.18) on 9,751 head sold.
Corn futures ended mixed Tuesday following early gains with July up 3/4 cent per bushel. The Dow Jones Index was 179 points lower with the NASDAQ down 120 points.