Live Cattle
Short Term: Down
Long Term: Down
Opening Calls: 30-50 Lower

Live cattle futures started another week with lower prices,as cash uncertainty and concerns over the reaction to this weeks' Fed announcement led to more weakness. The trade is now looking for a test of last weeks' lows. Cutouts were mixed on Monday, with choice sharply lower and select modestly higher. Overnight equity markets are strong, which may offer some livestock support. A good deal of Monday's weakness came after the 1:00 pm settlement, providing the lower calls this morning. There were no new tenders for delivery, with 30 retenders.

Feeder Cattle
Short Term: Down
Long Term: Down
Opening Call: 30-60 Lower

Feeder cattle futures led the downward action in the cattle complex on Monday, pushing to limit lower in the post 1:00 session. Corn was moderately higher on Monday and the cash index fell another 1.29 on the Monday post. The spread has widened back to spot futures being 8.35 discount to the index. The index is likely to weaken over the next few days, but not substantially. Corn is trading a penny lower as we write.

Bret Crotts
Schwieterman Marketing, LLC