Chicago mercantile Exchange live cattle contracts settled 55 points higher to 25 lower. Spot December was supported by higher beef carcass values and the prospect of steady to higher feedlot cattle prices again this week. Trade volume was light with many regulars out for the holidays. December was up 55 points at 84.22, and February was down 25 at 85.12.
Feeder cattle ended the session 20 to 55 points lower. The softness in the feeder pit was attributed to profit taking and a degree of bear spreading according to DTN. January feeders settled 55 poits lower at 94.97, and March was down 22 at 94.72.
Cattle country was at a virtual standstill on Tuesday. There appears to be mixed opinions as to the degree of business and prices expected in the feedlot trade this week. Some sources believe packers may have sufficient inventory on hand and may be willing to pay only steady money with last week. Others feel that with higher boxed beef prices improving margins, packers may be willing to pay a little more. Asking prices are 85.00 to 86.00 in the South while bids are only 81.00 to 82.00. Northern asking prices are at 135.00 plus with no bids reported. While the new show lists are generally mixed, the increases in the South are a good deal larger than the decreases in the North. Tuesday’s cattle slaughter was estimated at 124,000 head, 3,000 less than last week and 5,000 down from last year. Boxed beef cutout values ended the day firm to higher on light to moderate demand and light offerings. Choice beef was up .38 at 139.42, select was up 1.32 at 133.80.
Barrows and gilts in the Iowa/Minnesota direct trade closed 1.79 higher at 61.43 on a carcass basis, the West was up 1.86 at 61.50, and the East was down .45 at 57.94. The Missouri direct base carcass meat price is steady to 1.00 lower from 51.00 to 55.00. Hog slaughter was estimated at 437,000 head, 1,000 more than last week, and 3,000 greater than last year. While the pork carcass value started the week higher it closed 1.03 lower at 67.58 on Tuesday. Pork trading was moderate, with light demand and mostly moderate offerings. There is speculation the Saturday kill could be as large as 300,000 head according to DTN.
Lean hogs settled 7 to 80 points higher with the best buying interest in the front months.. February and April garnered support from bull spreading and news of higher cash sales in the direct trade areas west of the Mississippi. February was up 72 points at 65.42, and April was 322 higher at 70.02.
Pork bellies ended 100 points lower in the February contract, settling at 85.50 in a quiet session.
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