Follow-through pressure in feeder cattle futures quickly developed across the complex. Most cattle markets saw triple-digit losses as traders focused on additional liquidation. Hog trade also saw strong price pressure, focusing on uncertain fundamental shifts.
Cash cattle trade started to develop with live sales redeveloping around $117 per hundredweight (cwt) while dressed activity was seen at $187 to $188 per cwt. These sales are $2 to $3 per cwt lower than last week’s price levels. At this point, additional trade is still needed to be done, but the current movement may be enough to set the tone for the week.
The Fed Cattle Exchange Auction on Wednesday listed a total of 653 head, with zero actually sold, 309 head listed as unsold, and 344 head listed as PO (Passed Offer). The state-by-state breakdown looks like this:
- KS 242 total head, with zero head sold, 92 head unsold, 150 head listed as PO ($117.25);
- NE 217 total head, with zero head sold, 217 head unsold, and zero head listed as PO;
- TX 194 total head, with zero head sold, zero head unsold, and 194 head listed as PO ($117.50);
- 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: 653 head total, zero head sold;
- 1-17 day delivery — no cattle reported;
- 10-17 day delivery — no cattle reported;
- 17-30 day delivery — no cattle reported.
According to the closing report, the national hog base is $0.22 lower compared with the Prior Day settlement ($54.00-$60.50 weighted average $59.28).
The corn futures moved lower in light activity. March futures were 1 cent lower Wednesday. The Dow Jones Index is 36 points lower with the Nasdaq up 13 points.