Chicago Mercantile Exchange live cattle contracts settled 45 to 92 points lower. Spreaders bought the deferred months and sold April contracts. Traders are concerned over the outcome of this week’s cash trade as buyer’s lowered their bids on this week’s show lists. April live catle settled at 93.87 down .52, and June was down .60 at 91.72.
Feeder contracts ended the day 35 to 122 points lower pressured by the lower live cattle contracts. The lower corn prices and expectations of increased supplies in the future limited the buyer interest in the feeder cattle futures. March finished at 102.00 down .35, and April was 1.00 lower at 105.00.
Feeder cattle receipts at the Ozarks Regional Stockyards at West Plains, MO totaled 3631 head on Tuesday. Compared to last week, steers weighing less than 700 pounds were steady to 2.00 higher, over 700 lbs steady to weak. Heifers’ weighing less than 700 lbs 2.00 to 3.00 higher, over 700 lbs steady to 1.00 lower. Feeder steers medium and large 1 and 1-2 weighing 500 to 600 pounds traded from 104.00 to 125.00, 7 to 8 weights from 93.50 to 103.00. Feeder heifers weighing 500 to 600 pounds brought 94.00 to 112.00 and 7 to 8 weights from 88.00 to 95.00 per hundredweight.
Cattle buyers and feedlot operators are having a tough time negotiating price this week. Buyers did not renew their bids from yesterday. No bids were reported in the South where asking prices remain around 94.00. There were a few bids in Iowa/Minnesota and Nebraska at 143.00 to 144.00 and asking prices there have been lowered from 150.00 to 148.00 plus. The Wednesday kill was estimated at 120,000 head, even with last week, but 4,000 below last year. Boxed beef cutout values were generally steady on light to moderate demand and offerings. Choice was down .02 at 149.49 and select was up .18 at 149.20.
Barrows and gilts in the Iowa/Minnesota direct trade closed .44 lower at 73.39 on a carcass basis, the West was down .02 at 73.30, and the East is .52 lower at 69.81.Missouri direct base carcass meat prices closed steady from 65.00 to 67.00. Wednesday’s hog slaughter was estimated at 415,000 head, down 12,000 from last week and last year. The spread between carcass value and the weighted average carcass price is less than $2.00 implying the worst processing margins seen in the last month. Yet country numbers remain too tight for hog buyers to wrench any leverage away from the producers.
Lean hogs were able to keep their heads above water and settled 12 to 27 higher with just a couple of back months in the red. There was some profit taking earlier in the session. Markets are still so far above support levels, that traders are looking for profit taking opportunities while the tone of the market remains strong according to DTN. April settled .15 higher at 72.55, and May was up .12 at 78.05. Pork trading was slow, with mostly light demand and mostly moderate offerings. Pork carcass cutout value was down .67 at 73.95.
Pork bellies were lightly traded. May ended slightly higher on short covering and the bullish weekly storage numbers. May settled .12 higher at 93.00.
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