After big key reversals on live cattle, feeder cattle and hogs on Monday, the trade continued to follow through on Tuesday.
“Really everywhere across the board, we've been able to find some strength and bounce off the lows minimally,” says Ted Seifried of Zaner Ag Hedge. “Hogs have actually done quite well on trade, finishing the day higher, somewhat negating the big sell signal we saw yesterday.”
The one exception: feeder cattle. Taking pressure from a higher corn market, the market was reluctant to embrace the higher trade Tuesday, but held on to support very well, Seifried says.
“So overall, if you look at the fundamentals, yes, the market has been expecting more downside trade both in cash pressure or lower cash market and also in the futures market. But we really haven't seen that materialized,” he adds.
Click above to hear his analysis of what might happen next as these markets continue to react to weather and export demand.