Moderate to active pressure developed in cattle futures Wednesday, following triple-digit losses seen in deferred live cattle and feeder cattle trade. Traders continue to adjust positions following changes in supply and demand estimates, curbing previous buyer support. Hog futures continue to shift lower as traders search for short term support levels.
Cattle futures moved into the driver’s seat Wednesday with active pressure developing in deferred contracts as traders looked past current supply and demand issues and focused more on potential long-term market shifts.
Triple-digit losses developed in deferred live cattle and feeder cattle trade, focusing primarily on spring and summer 2022 contracts. This shift not only created uncertainty in next year’s price levels, but also limited any buyer support in nearby contracts Wednesday.
Hog futures have continued the weaker market trend seen during the last week, although prices shifts have moderated significantly from active triple-digit losses over the last two days, as traders appear to be sincerely searching for underlying market support. Hog prices moved lower on the National Direct Afternoon Hog Report in active trade, falling $0.93 with a weighted average of $68.18 on 11,439 head.
December corn is down 10 1/4 cents per bushel and December soybean meal is down $1.30 per ton. The Dow Jones Industrial Average is down 1 point and NASDAQ is up 105 points.