Buyers have stayed aggressive, despite the price tag of feeder calves this January.
Excitement fills the air at many auction barns these days. That excitement was enhanced by the realization that lightweight feeder steers were widely trading at more than $2/lb.
Feeder cattle prices are already running about 20% higher than a year ago before they got another boost from a mid-January government feed grain report pegging corn supplies higher than the trade was expecting.
As a result, corn prices plunged and U.S. feeder cattle futures at the Chicago Mercantile Exchange (CME) rallied to new highs. Cash cattle prices throughout the region rose by $2-$3/cwt.
While lightweight feeders have the most sizzle, fed cattle and replacement heifers are also trading higher.
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