Wide market shifts developed Wednesday. Cattle futures saw strong gains following Tuesday’s turnaround, while hog futures closed sharply lower following China’s announcement it would be keeping tariffs on U.S. pork.
Nearby lean hog futures turned sharply lower Wednesday following China’s announcement that while it would exempt certain U.S. products from the latest round of tariffs, pork wasn’t one of them. Meanwhile, cattle futures saw strong gains, further moving away from contract lows and helping to solidify renewed commercial buying. Cash cattle trade remains undeveloped despite the rally in futures.
Bids have become more evident in all areas with packers bidding $97 to $98 per cwt in the South live basis and $156 to $157 dressed and $100 live in the North. Although some sales may be uncovered Thursday, active trade is likely to be pushed off until Friday without a significant shift in futures or beef values develops.
The National Daily Direct afternoon hog report was $1.50 lower ($44-$54, weighted average $47.27) on 12,222 head.
Corn prices slipped slightly lower in limited activity with December down 1 1/2 cents. Stock markets were higher in light trade with the Dow up 227 points and the NASDAQ up 85 points.