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

Live cattle futures took out Monday's highs on Tuesday, before retreating to midrange on the close. Today is all about the Fed, with release of their interest rate hike decision due to be released at 1:00 pm. We heard that packers were bidding $117 on Tuesday morning, which we view as encouraging this early in the week. No trade has occurred, with asking prices $121 or higher in the south. Boxed beef was once again lower on choice and higher on select, suggesting plenty of overfat cattle still available.

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

Feeder cattle futures rallied more than 4.00 off of session lows, before setting back and trading softer in the afternoon session. Weakness in the cattle crush continues to suggest that feeders remain overvalued in their relationship with the fats and the corn. The cash index was off 1.28 for the day, with the one day average 600-700 points below the seven day average. Corn was higher on Tuesday and is steady overnight.

Bret Crotts
Schwieterman Marketing, LLC