Livestock Contracts Absorb Aftermath of Tuesday’s Corn Rally
Tuesday’s livestock contracts traded pretty consistently throughout the day, knowing before the WASDE report was released that there was a good chance corn prices would jump higher.
The biggest hype of Tuesday’s trade was solely wrapped around the corn market and how it would affect livestock contracts. Feeder cattle contracts continued to trade lower, feeling more and more pressure build on the complex as cost of gains get steeper and steeper. Meanwhile, the long-term, underlying support in live cattle contracts wasn’t really shaken and lean hog contracts were able to close fully higher. Hog prices were lower on the National Direct Afternoon Hog Report, down $0.52 with a weighted average of $55.00 on 7,611 head. March corn closed up 25 cents per bushel and March soybean meal was up $18.60. The Dow Jones Industrial Average is up 60.00 points and NASDAQ is up 36.00 points.