Chicago Mercantile Exchange live cattle contracts settled 15 higher to 45 points lower. The front month contracts bounced nearly 50 cents off session lows at midday. Spreaders sold February and April and bought June contracts. There was also some positioning ahead of the monthly cattle on feed report due for release on Friday. February closed 45 points lower at 87.45, and April was up 65 points at 91.12.
Feeder cattle settled 47 higher to 32 points lower following the early weakness in the live pit. The continued selling pressure in grain markets helped to support the deferred issues as producers anticipate lower feed costs through much of the year. January settled 32 points lower at 97.92, and March was up 20 at 99.87.
Cattle trading was slow on light demand in parts of the North on Wednesday. A regional buyer purchased cattle at 140.00, 3.00 to 4.00 higher than last week in both Nebraska and Iowa/Minnesota, but majors are dragging their feet with bids at 135.00 to 137. Bids in the South are poorly defined, but probably around 83.00 to 84.00. Asking prices are generally 88.00 plus in the South and 140.00 plus in the North. Cattle slaughter was estimated at 126,000 head, 1,000 less than last week, and 1,000 more than last year. Boxed beef cutout values ended the day weak to lower on light to moderate demand and moderate to heavy offerings. Choice boxed beef ended 1.17 lower at 145.38, and the select cuts were down .48 at 140.97.
Feeder cattle receipts at the St. Joseph, MO Stockyards totaled 4500 head on Wednesday. Compared to last week, feeder steers and heifers opened fully steady. Buyers continued to absorb heavy receipts of feeders currently moving across the Midwest. Feeder steers medium and large 1 weighing 600 to 700 pounds traded from 96.10 to 103.60. 6 to 7 weight heifers brought 89.75 to 94.10 per hundredweight.
Barrows and gilts in the Iowa/Minnesota direct trade closed 3.28 higher at 69.77 on carcass basis, the West was up 2.63 at 69.22, and the East closed at 67.89 up .36. Missouri direct base carcass meat price closed steady to 1.00 lower from 60.00 to 62.00. Wednesday’s hog kill was estimated at 421,000 head, 4,000 less than last week and down 1,000 from last year. Processing margins started the week in good shape, and improved more over the last couple of days. Saturday slaughter plans are still iffy, but should be no less than 110,000 head as some packers make up for Monday’s holiday.
Lean hogs settled 30 to 142 points lower. Traders are still unsure about the overall demand for pork although higher cash prices in the direct trade at noon took some of the pressure off the market. February was 30 points lower and settled at 70.45, April finished down 65 at 73.37. Pork trading was slow to moderate, with moderate to good demand and light to moderate offerings. The pork carcass cutout was up 2.44 at 78.63.
Pork bellies settled 70 to 120 points lower on spillover pressure from the live pit with most traders on the sidelines. February was down 120 at 89.05, and March closed 70 lower at 88.30.
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