Early triple-digit losses in cattle futures Wednesday morning was not enough to keep buyers out of the market through the entire trading session. Cattle futures rallied higher, closing mostly higher in live cattle contracts, and mixed in feeder cattle trade. Sharp lean hog gains redeveloped through the end of the trading session, bringing firmer undertones to the entire lean hog complex.
Cash cattle activity remains quiet midweek with packers becoming slightly more active through the day. Bids are seen from $108 to $110 per cwt live basis and $173 per cwt dressed. Although no sales have been reported, it appears that steady to higher money will be the focus by the end of the week.
Asking prices remain at $112 and higher live basis, and $178 to $180 dressed. Activity on the Fed Cattle Exchange Auction report today listed a total of 919 head, with 230 actually sold, 386 head listed as unsold, and 303 head listed as PO (Passed Offer).
The state by state breakdown looks like this:
- KS 430 total head, with 230 head sold at $109.00, 105 head unsold, 95 head listed as PO ($109.00);
- NE 151 total head, with 0 head sold, 151 head unsold, and 0 head listed as PO;
- TX 338 total head, with 0 head sold, 130 head unsold, and 208 head listed as PO ($109.00);
- CO no cattle reported;
- IA no cattle reported;
- other states no cattle reported.
The delivery date/weighted averages breakdown is as listed:
- 1-9 day delivery: 768 head total, 230 head sold, with a weighted average price of $109.00;
- 1-17 day delivery 151 head total, no sales;
- 10-17 day delivery no cattle reported;
- 17-30 day delivery no cattle reported.
According to the closing report, the national hog base is $1.78 higher compared with the Prior Day settlement ($53.00-$63.75) weighted average $62.13.
The corn futures moved lower in light activity. December futures were 1 1/2 cent lower Tuesday. The Dow Jones Index is 158 points higher with the Nasdaq up 8 points.