Live Cattle
Short Term: Down
Long Term: Down
Opening Calls: Mixed

Live cattle futures settle moderately lower on Tuesday, with lower cutouts and concerns over shrinking equity markets weighing on early recovery efforts. Equities are firmer overnight, but traders are going to wait for evidence of a positive close before taking much of a stance in this market. Inventories remain tight in the south, while northern growers still have some overfed supplies to get rid of. Expect more two sided trade today.

Feeder Cattle
Short Term: Down
Long Term: Down
Opening Call: Mixed

Feeder cattle futures managed to settle moderately higher on Tuesday's 1:00 pm close but filtered lower in the afternoon session. Late day weakness in equities prompted the selloff. The cash index dropped 1.13 for the day but remains 2.25 premium to the soon to expire August contract. Corn was off 2-3 cents on Tuesday but is regaining a like amount in overnight trade. Choppy trade should remain the pattern for today's activity.

Bret Crotts
Schwieterman Marketing, LLC