USDA Mandatory reported cattle trading was light in Eastern and Central Nebraska with light to moderate demand. Compared to Tuesday’s early trade, dressed sales were trending unevenly steady to 1.00 lower from 157.00 to 159.00, mostly 157. A few live sales in the east sold steady at 98.00. In the western Corn Belt compared to last week, live sales traded 2.00 lower at 98.00, and dressed sales were 2.00 to 3.00 lower from 157.00 to 158.00. Trading was mostly inactive in all other trading regions and business in the South may be finished for the week. Cattle slaughter was estimated at 128,000 head, the same as last week, and 1,000 less than last year. Boxed beef cutout values were weak on light demand and light to moderate offerings. Choice beef was down .50 at 169.77, and select was .10 higher at 167.46.

Chicago mercantile Exchange live cattle contracts settled 20 points higher to 30 lower. Open interest was significantly weaker which could indicate that funds are starting to look for greener pastures than the live cattle markets. DTN’s Rick Kment says this could spell trouble if sharp market liquidation continues as these investors lose favor with the live cattle market. There was some spreading out of June into April and August. April settled unchanged at 98.05, and June was down .30 at 93.42.

Feeder cattle settled mostly 35 to 77 points lower with the exception of the spot April closing higher.  The corn market ended higher causing concern of higher input costs for cattle feeders. There was additional pressure from the live pit. April feeders settled .07 higher at 113.27, and May was down .77 at 112.30.

Cattle receipts at the Philip Livestock Auction, Philip, SD totaled 2249 head on Tuesday. Compared to two weeks ago, feeder steers sold mostly 2.00 to 6.00 higher with feeder heifers mostly 4.00 to 7.00 higher.  Slaughter cattle sold mostly steady to 1.00 lower. Buyer attendance was good with good demand. Feeder steers medium and large 1 weighing 582 pounds traded at 132.96, value added feeder heifers weighing 581 pound brought 128.25.

Barrows and gilts in the Iowa/Minnesota direct trade closed .68 lower at 83.58 on a carcass basis, the West was down .45 at 83.93, and the east closed 1.10 higher at 82.04. The Missouri direct base carcass meat price closed 1.00 higher at 77.00. Hog slaughter was estimated at 410,000 head, 2,000 more than last week, and 3,000 less than last year.  Pork producers clearly responded to higher country bids on Tuesday, with the largest country run in weeks. Short-bought packers may not be so short at midweek.

Lean hogs settled 50 points higher to .35 lower in a fairly light trade. Packers continue to focus on the steady demand and lack of aggression by packers to seek additional hogs for processing as the market is looking for a quiet day at packing plants on Saturday as well as nearly steady runs through the end of the week. Some traders expressed concern about the direction of near term fundamentals. May ended .07 higher at 88.20, and June was down .35 at 84.60. Pork trading was slow to moderate, with light to moderate demand and mostly moderate offerings. The lean carcass cutout was down, 70 at 89.13.

Pork bellies ended unchanged to higher with spreading the main feature of the session. The uncertainty in the global economy and the mixed stock market as well as the lack of strong support in non agricultural markets kept most traders in current positions. May closed .70 higher at 97.20, and July was unchanged at 97.80.