Live cattle spiked after the opening bell, driven by follow-though buying, residual optimism after Monday's steep climb and Chicago Board of Trade corn's reversal of Monday's rally. This initially triggered live cattle bull spreading into June out of back months.

However, spot-month profiteers cashed in their chips soon after June broke through 40-day moving average resistance and August peaked at an April 10 high. Bear spreading ensued when boxed beef's performance became an issue and June ultimately was unable to hold above significant moving average support floors.

Packers and producers likely paid close attention to what happened with futures and boxed beef on Tuesday as they negotiate this week's cash sales, a trader said. This will take on even greater significance because CME livestock pits wrap up business on Friday at 1 p.m. EDT (1700 GMT), an hour earlier, and the markets will be closed on Monday in observance of the Memorial Day holiday, he said.

Source: FXSTREET