Feeders were hit hard today as the May contract’s LTD is tomorrow the 28th. With that being said, the August contract took the worst of it and fell $4.20. Heavy volume was traded in the August contract which makes me believe there will be a washout of the weak long positions before there is any sort of support or bounce back to the upside. June live cattle were again down today but only $1.225 and failed to take out the Monday low of 134.450. I think fat cattle are consolidating within the $2 range between 136 and 134 while the cash market seems to be stable with bids around 140-142. If the market again fails to take out yesterday’s low and Monday’s low then I believe it will reverse and fill the gap between 136.850 to 138.425.
June hogs continued to move lower today closing down 110.350, down .800 on the day. The move today took out Tuesday’s low and I would expect the market to continue to fall down to the 109 range. If by chance hogs don’t find any support there then I would suspect the market to continue it’s tumble down to the next level of support around 105.
Corn took out the recent high of 8.15 and hit a high of 8.18 Wednesday and I think it could signal a push higher to the 8.20-8.30 level.