Feedlot operators and cattle buyers far apart on price

Cattle trading was very slow in Nebraska on light demand on Friday. A few early live sales traded at 88.00 to 89.00, but not enough to establish a trend. A few dressed sales have traded steady to weak at 144.00 to 145.00. The majority of producers continued to pass on the current bids. Trading remained inactive in the Southern Plains with light buyer inquiry. Bids and asking prices remained about 4.00 to 5.00 apart in the South and no one wanted to budge. The cattle slaughter was estimated at 617,000 head for the week, 15,000 less than last week, but 14,000 more than last year.  Boxed beef cutout values were weak on light demand and offerings. Choice beef was down .50 at 149.59, and select was also .50 lower at 148.11.

Chicago Mercantile Exchange live cattle contracts settled 25 higher to 10 lower. The market was undirected on Friday with traders focusing on the development of the cash market. There was positioning ahead of the weekend and some spreading of June into April. April settled 7 points lower at 92.95 and June was down 10 at 91.57.

Feeder cattle settled mostly 10 to 50 points higher with only the March contract in the red.  Lower corn values were once again supportive. There was some spreading out of the front months into the deferreds as positions were squared ahead of the weekend. March was down 32 points at 102.20 and April was up 10 at 105.22.

Feeder cattle receipts at Missouri auctions this week totaled 57,241 head, feeder steers and heifers were steady to 2.00 higher. Holstein steers were steady to 4.00 higher.  Demand was moderate to good, and the supply was heavy. The weather this week moderated and allowed producers to readily move livestock from pastures and lots to the auctions, more than doubling the receipts from last year. Feeder steers medium and large 1; 2002 head averaging 625 pounds traded at an average of 110.97 per hundredweight, 1576 heifers weighing 624 pounds brought 100.18.

Barrows and gilts in the Iowa/Minnesota direct trade closed .54 higher at 72.23 on a carcass basis, the West was .42 higher at 72.36, and the East was .24 higher at 70.76.The Missouri direct base carcass meat price is steady from 64.00 to 65.00.  The weekly hog slaughter was estimated at 2,168,000 head, 5,000 more than last week, but 57,000 less than last year. Although cash hog prices have pretty much maintained a firm undertone through the week, packers have not managed to get ahead of immediate slaughter needs. This inability speaks well of tight market numbers.

Lean hog contracts settled 52 higher to 47 lower in a sluggish trade. There was some spreading out of July into June and position squaring ahead of the weekend. April settled 47 points lower at 73.10, but May was up 7 at 79.02. Pork trading was very slow, with very light demand and offerings. Pork carcass cutout value was down .20 at 75.71.

Pork bellies ended the session unchanged to 5 points lower on a lack of trader interest. Volume was low with very little incentive for traders to return to the market ahead of the weekend. May was the only month traded and it ended 5 points lower at 93.00.