GENERAL COMMENTS:
It was an incredible day for both the live cattle and feeder cattle markets as traders showed the contracts ample support, and helped drive the markets substantially higher. Some Northern trade was noted in Nebraska at $300 which is $3.00 higher than last week's weighted average. March corn is down 3/4 cent per bushel and January soybean meal is down $0.90. The Dow Jones Industrial Average is down 99.27 points.
LIVE CATTLE:
The market only grew sweeter and sweeter for the live cattle complex as time passed by as not only were the futures contracts able to close higher, but the strength throughout the market's fundamentals also came to fruition as Northern cash cattle traded higher too. Shortly after the noon hour some dressed sales were reported in Nebraska at $300, which is $3.00 higher than last week's weighted average. There hasn't been any more trade noted in the South following Tuesday's light movement, but more will likely develop ahead of the week's end. Asking prices for cattle left to trade in the South remain firm at $192 plus, but asking prices in the North remain unestablished still. The board's performance was incredible on Wednesday as well as the spot February contract closed over $191, which is the highest point the market has traded at since last May. The market seemed to propel higher upon seeing the continued momentum in the cash sector, and upon seeing the tremendous rally in the Nasdaq. December live cattle closed $2.40 higher at $192.25, February live cattle closed $2.35 higher at $191.37 and April live cattle closed $1.97 higher at $192.62.
Wednesday's slaughter is estimated at 125,000 head -- steady with a week ago and 1,000 head less than a year ago.
Boxed beef prices closed lower: choice down $0.50 ($311.23) and select down $1.54 ($278.11) with a movement of 122 loads (65.43 loads of choice, 33.94 loads of select, 12.43 loads of trim and 9.79 loads of ground beef).
THURSDAY'S CATTLE CALL: Steady. Given that trade has now developed in both regions, it's likely that the week's prices are determined, although more cattle will still likely trade ahead of the week's end.
FEEDER CATTLE:
The feeder cattle market was able to breathe a sigh of relief as the market was thrilled to see the movement and action Wednesday in the live cattle complex, which consequently helped drive the feeder cattle market higher too. But as of late, the feeder cattle market had seemed to technically stall out, as the market was waiting for confirmation that higher prices were indeed where traders wanted to take the complex. And thankfully, Wednesday's gust of support delivered just that. January feeders closed $1.72 higher at $259.05, March feeders closed $1.92 higher at $259.37 and April feeders closed $1.82 higher at $260.17. At Winter Livestock Auction in La Junta, Colorado compared to last week feeder steers under 500 pounds sold mostly $5.00 to $9.00 higher, but feeder steers weighing between 500 and 600 pounds sold $4.00 to $10.00 lower, while the steers over 600 pounds sold mostly $7.00 to $10.00 higher. Feeder heifers under 550 pounds sold $2.00 to $10.00 lower. Feeder heifers over 550 pounds sold mostly $2.00 to $8.00 higher with sharply higher instances. Feeder cattle supply over 600 pounds was 34%.
LEAN HOGS:
The lean hog complex didn't see the same level of support that the cattle contracts did throughout the day, which is somewhat expected when pork cutout values continue to trade lower. Again, Wednesday, the carcass price was pulled lower as consumer demand has been null again this week. February lean hogs closed $0.20 lower at $84.37, April lean hogs closed $0.65 lower at $88.25 and June lean hogs closed $0.62 lower at $99.52. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $0.72 with a weighted average price of $81.39 on 3,773 head. Pork cutouts totaled 287.18 loads with 251.19 loads of pork cuts and 36.00 loads of trim. Pork cutout values: down $0.27, $92.87. Wednesday's slaughter is estimated at 487,000 head -- 2,000 head less than a week ago and 3,000 head less than a year ago.
THURSDAY'S HOG CALL: Lower. Given that packers bought over 9,000 head in Tuesday's cash market and weren't very aggressive Wednesday -- it likely means that they're all but done buying for the week.
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