Feeder cattle trade higher at the Monday auctions

Cattle trade volume last week was larger in all major feeding states especially in Texas. This week’s ready show list numbers are mixed, larger in Texas and smaller in Colorado, Nebraska and Kansas. Early asking prices are around 96.00 to 97.00 in the South and 152.00 plus in the North. Monday’s cattle slaughter is estimated at 125,000 head, 5,000 more than last week and 3,000 greater than a year ago. Boxed beef cutout values closed firm to higher on light to moderate demand and offerings. Choice beef was up 1.19 at 150.83 and select was .44 higher at 148.94.

Chicago Mercantile Exchange live cattle contracts settled 25 to 80 points higher on last week’s higher cash cattle prices, fund buying and higher beef quotes at midday. April and June hit new contract highs. April finished .55 higher at 95.65, and June was up .80 at 93.60.

Feeder cattle finished the session narrowly mixed mainly on building pressure in the outside markets. The soon to expire March was down .10 at 102.90, and April was .05 lower at 106.25.

Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 12,600 head. Feeder steers at midsession were steady to 2.00 higher. Stocker steers and steer calves were 2.00 to 3.00 higher. Feeder and stocker heifers and heifer calves were steady to 1.00 higher with feeder heifers just lightly tested. Demand was good for all classes. Quality was plain to average. Feeder steers medium and large 1; 500 to 600 pounds traded from 116.00 to 124.50, 7 to 8 weights from 100.25 to 106.25. Feeder heifers weighing 500 to 600 pounds brought 106.00 to 114.50 and 700 to 750 pounds from 94.00 to 97.50.

Barrows and gilts in the Iowa/Minnesota direct trade closed 1.41 lower at 69.12 on a carcass basis, the West is 1.33 lower at 69.28, and the East is down 1.30 at 69.36. Missouri direct base carcass meat price closed steady to 2.00 lower from 64.00 to 65.00. Hog slaughter is estimated at 418,000 head, 9,000 more than a week ago, but 3,000 less than last year.  DTN predicts slaughter plans should be more aggressive this week with Tyson’s plant at Logansport back on line. Yet processing margins do not look encouraging due to rather lackluster wholesale pork demand.

Lean hogs settled 17 to 85 lower on lower prices in the cash market, profit taking and fundamentals. There was some spreading as traders sold April and bought June and July contracts. April was down .85 at 71.80, and June was 22 points lower at 80.57. Pork trading was slow, with light to moderate demand and offerings. Pork carcass cutout was up .22 at 74.05.

Pork bellies ended the session on spillover pressure from the lean pit and a general lack of buying interest. Only May was quoted and it was 1.00 lower at 91.05.