Moderate-to-strong pressure developed in livestock trade Wednesday as traders steadily backed away from initial buyer interest that developed in the first few minutes of trade. This could continue to add weakness to both cattle and hog futures through the end of the week.
Cash cattle trade slowly developed Wednesday afternoon with clean-up activity seen in Kanas at $120 per hundredweight (cwt). This is in line with previous week’s trade activity and once again confirms that the overall market tone and price levels have already been set by the early week trade. There could be some additional cattle moved over the next couple of days, but prices are not likely to change significantly before the end of the week.
The Fed Cattle Exchange Auction on Wednesday listed a total of 711 head, with 401 actually sold, 310 head listed as unsold, and zero head listed as PO (Passed Offer). The state-by-state breakdown looks like this:
- KS 529 total head, with 401 head sold at $119.00, 128 head unsold, zero head listed as PO;
- NE 60 total head, with zero head sold, 60 head unsold, and zero head listed as PO;
- TX 122 total head, with zero head sold, 122 head unsold, and zero head listed as PO;
- 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: 651 head total, 401 head sold, with a weighted average price of $119.00;
- 1-17 day delivery — no cattle reported;
- 10-17 day delivery — 60 head total, zero head sold;
- 17-30 day delivery — no cattle reported.
According to the closing report, the national hog base is $1.87 higher compared with the Prior Day settlement ($61-$71.25) weighted average $69.43.
The corn futures are mixed in light activity. March futures were steady Wednesday. The Dow Jones Index is 41 points lower with the Nasdaq down 29 points.