Moderate to strong losses quickly moved through cattle futures as triple-digit declines flooded back into the feeder cattle market. This eroded early support in live cattle futures, pushing prices moderately lower.
Cash cattle activity remained quiet with only scattered bids developing earlier in the day. Packers continue to bid $114 to $115 per cwt on a live basis in all areas. Bids for dressed basis cattle have been unavailable so far this week. Asking prices remain at $119 to $120 per cwt at midweek with no indication that feedlot managers will back away from these levels in the near future.
The Fed Cattle Exchange Auction on Wednesday listed a total of 704 head, with 75 actually sold, 246 head listed as unsold, and 383 head listed as PO (Passed Offer). The state-by-state breakdown looks like this:
- Kansas 318 total head, with 75 head sold at $116.00, 59 head unsold, 184 head listed as PO ($116.00);
- Nebraska 121 total head, with 0 head sold, 121 head unsold, and 0 head listed as PO;
- Texas 265 total head, with 0 head sold, 66 head unsold, and 199 head listed as PO ($116.00);
- Colorado — no cattle reported;
- Iowa — no cattle reported;
- other states — no cattle reported.
The delivery date/weighted average breakdown is as listed:
- 1-9 day delivery: 704 head total, 75 head sold, with a weighted average price of $116.00;
- 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 $1.08 lower compared with the Prior Day settlement ($50.00-$59.20) weighted average $57.04.
The corn futures moved higher in light activity. March futures were 1 cent higher Wednesday. The Dow Jones Index is 114 points higher with the Nasdaq up 17 points.