Strong early pressure in lean hog and cattle futures gave way to late-day gains as traders focused on a potential trade deal. Futures held on to triple-digit gains through the end of the session.
Livestock futures saw a technical reversal Tuesday morning, sparking renewed buyer support in cattle and hog futures. Buying is becoming established given the recent oversold status of the complex. Cash cattle markets remain quiet Tuesday afternoon with limited interest from either side.
A few bids are reported in Nebraska at $100 per cwt live basis, while limited asking prices are seen at $168 to $170 dressed in the North. At this point, both sides appear unwilling to pull the trigger given the midday turnaround in futures, and the potential long-term shift this could bring to the cattle complex.
The National Daily Direct afternoon hog report was $1.72 lower (45-$50.50 per cwt, weighted average $48.93) on 15,628 head.
Corn prices posted strong late-day gains with December up 7 1/4 cents. Stock markets were mixed in light trade with the Dow up 40 points and the NASDAQ down 28 points.