Triple-digit gains quickly developed in hog trade Wednesday as May futures posted an impressive $1.95-per-cwt rally. This overall support continues to draw buyers to the table, which may further support livestock trade the rest of the week.
Cash cattle activity remains generally undeveloped with a few scattered bids redeveloping midweek. Bids are seen at $116 per cwt live basis in Kansas, while dressed bids have surfaced at $190 per cwt in Nebraska. At this point, both sides appear to remain well rooted in their plan to hold onto price points. This is likely to push active trade toward the end of the week. Asking prices are still somewhat hard to pinpoint, but overall asking prices are likely to be around $122 and higher live basis and $192 and higher dressed.
The Fed Cattle Exchange Auction on Wednesday listed a total of 3,220 head, with 499 actually sold, 2,721 head listed as unsold, and zero head listed as PO (passed offer). The state-by-state breakdown looks like this:
- KS 171 total head, with 0 head sold, 171 head unsold, 0 head listed as PO;
- NE 3,049 total head, with 499 head sold at $120.00-$122.00, 2,550 head unsold, and 0 head listed as PO;
- TX – no cattle reported;
- CO – no cattle reported;
- IA – no cattle reported;
- other states (OK, SD, MN) – no cattle reported.
The delivery date/weighted averages breakdown is as listed:
- 1-9 day delivery: 2,882 head total, 161 head sold, with a weighted average price of $122.00;
- 1-17 day delivery: 338 head total, 338 head sold, with a weighted average price of $120.00;
- 10-17 day: no cattle reported;
- 17-30 day delivery: no cattle reported.
According to the closing report, the national hog base is $1.92 higher compared with the Prior Day settlement ($46-$57.50, weighted average $54.19).
The corn futures are higher in light activity. May futures were 2 cents higher Wednesday. The Dow Jones Index is 7 points lower with the Nasdaq up 28 points.