Market News

Feedlot cattle ended the week with mostly higher prices

USDA Mandatory reported cattle trading was light in the Texas Panhandle on Friday morning. Compared to Thursday’s trade live sales were steady to 1.00 higher at mostly 121.00. Trading was light to moderate in Eastern Nebraska. Compared to last week dressed sales were steady to mostly 2.00 higher with the sales ranging from 191.00 to mostly 193.00. Dressed sales in Iowa have traded from 192.00 to 193.00. The weekly cattle slaughter was estimated at 671,000 head, 20,000 more than last week, and 3,000 greater than 2010.

Boxed beef values were steady to weak on light demand and moderate offerings. Choice beef was up .14 at 188.10, and select boxes were .13 lower at 169.13.

Chicago Mercantile Exchange live cattle contracts settled mostly lower after exhibiting moderate to strong support in the trade. The lack of support in the outside markets weighed on futures.  October settled .20 higher at 120.95, December was down .85 at 119.05, and February was .72 lower at 121.95.

Feeder cattle ended the session 15 higher to 47 lower in extremely light trade with most traders focusing on the lackluster moves in the outside markets. November ended .47 lower at 141.10, and January was down .35 at 145.60.

Feeder cattle receipts at Missouri auctions totaled 35,612 head this week. Compared to last week, feeder steers sold steady to 4.00 higher, with some light weights 4.00 to 8.00 higher. The exception being steers from 650 to 800 pounds selling mixed from 3.00 lower to 1.00 higher. Feeder heifers weighing less than 500 pounds and over 700 pounds sold 3.00 to 7.00 higher, with mid-weight heifers 3.00 lower to 3.00 higher. With harvest nearly complete, full attention has been directed back to the cattle business and was reflected by auction receipts. New crop calves came to town loads at a time and made up a large chunk of the offerings, with true yearlings becoming few and far between. 1377 feeder steers medium and large 1 averaging 525 pounds traded at 150.68 per hundredweight. 874 heifers averaging 525 pounds brought 135.46.

Lean hogs settled .02 to .67 higher as light to moderate support developed in the lean market through the morning mainly on the stability in the cash markets and ideas that demand could remain firm. Despite the softness in the whole sale prices, pork values remain at historically high levels mainly on the strength in exports. December settled .02 higher at 86.67, and February was up .22 at 89.90.

Hog market activity was moderate with moderate demand. Iowa/Minnesota hogs were up 1.43 at 87.78 on a carcass basis, the West was 1.49 higher at 87.79, and Eastern barrows and gilts closed 2.42 lower at 87.42. Missouri direct base carcass meat price closed steady from 83.00 to 86.00.

Pork trading was slow with light to moderate demand and offerings. Pork carcass value was down .02 at 97.00.

The weekly hog slaughter was estimated at 2,306,000 head, 17,000 less than last week and down 5,000 from last year.  The Saturday kill was estimated at 166,000 head. Prices are expected to remain firm next week as packers continue to enjoy excellent profit margins.