Buyer support quickly broke loose through the second half of the trading session Wednesday. This led to strong triple-digit gains seen in live cattle and feeder cattle markets. Even though neither market posted limit gains at closing bell, the market in some nearby contracts came within pennies per cwt of trading limits.
Cash cattle trade in feedlot country remains quiet at this point Wednesday afternoon. But active bids have developed through the day with live bids seen at $104 per cwt while dressed bids are at $165 per cwt. Packer interest still remains light given the overall outside market support. Asking prices have firmed through the day due to the sharp gains in futures prices.
Live cattle are showing asking prices of $110 to $111 per cwt, while dressed asking prices are much less defined, but expected to be seen from $172 to $175 per cwt. The Fed Cattle Exchange Auction report today listed a total of 1,450 head, with 636 actually sold, 440 head listed as unsold and 374 head listed as PO.
The state by state breakdown looks like this:
- KS 608 total head, with 382 head sold at $106.50-$106.75, 0 head unsold, 226 head listed as PO ($106.00);
- NE 300 total head, with 0 head sold, 300 head unsold, and 0 head listed as PO;
- TX 542 total head, with 254 head sold at $106.75, 140 head unsold, and 148 head listed as PO ($106.50);
- CO no cattle listed;
- IA no cattle listed;
- other states no cattle listed.
The delivery date/weighted averages breakdown is as listed:
- 1-9 day delivery: 1,150 head total, 636 head sold, with a weighted average price of $106.67;
- 1-17 day delivery 97 head total, no sales; 10-17 day delivery 0 head total;
- 17-30 day delivery 203 head total, no sales.
According to the closing report, the national hog base is $0.90 lower compared with the Prior Day settlement ($45.50-$52.00) weighted average $51.75.
The corn futures moved higher in light activity. December futures were 2 cents higher Wednesday. The Dow Jones Index is 26 points higher with the Nasdaq down 6 points.