Live Cattle
Short Term: Down
Long Term: Down
Opening Calls: 40-60 Lower

Live cattle futures traded in a broad range on Tuesday, but were unable to hold midday gains, closing modestly lower on the day and weakening more in the post trade session. Cutout values were higher on Tuesday, while weakness in equity markets helped keep sellers in control of the cattle. Equities are more mixed overnight and weakness in the Dollar may provide commodities with a lift. A test of the spot month continuation chart lows of 120.02 continues to draw attention.

Feeder Cattle
Short Term: Down
Long Term: Down
Opening Call: 50-100 Lower

Feeder cattle futures traded both sides of unchanged but finished weak on Tuesday, with the January contract leading the selloff, due to continued weakness in the cash market. Cash index levels were off 1.86 for the day and are expected to see more weakness into weeks end. With the days' losses, January futures remain nearly 10.00 discount to the current index. Corn prices were modestly higher on Tuesday and are showing a little more strength overnight and ahead of today's monthly supply/demand report.

Bret Crotts
Schwieterman Marketing, LLC