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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