The cash cattle market was untested on Wednesday with just a few scattered bids of 120.00 in Kansas and Texas. Asking prices are around 126.00 to 127.00 in the South and 203.00 to 205.00 plus in the North. Assuming packers continue to limit chain speed significant trade volume would be delayed until Friday. The slaughter totaled 124,000 head, 3,000 more than last week, and 8,000 larger than 2011.
Boxed beef cutout values were higher on moderate demand and light to moderate offerings. Choice beef was up 1.04 at 184.27, and select closed .60 higher at 178.68.
Live cattle contracts settled 65 to 107 points higher on the Chicago Mercantile Exchange on Wednesday. Support came from strength in the outside markets and a weaker U.S. dollar. The drop in the dollar is good for exports as it results in lower prices for overseas buyers. Traders do remain uncertain about the direction of the cash cattle trade and continue optimistic that increased support will be seen in the boxed beef trade. February settled .86 higher at 125.70, and April was up .65 at 129.92.
Feeder cattle contracts settled 37 to 70 points higher on support from the live pit and stronger outside markets. The March contract set another record high. Futures were pressured some by higher corn prices. March was up .32 points at 155.85, and April was .60 higher at 158.22.
Feeder cattle receipts at the Ozarks Regional Stockyards at West Plains, Missouri totaled 3408 head. Compared to last week, steers traded 2.00 lower to 4.00 higher, with the decline on the steers over 800 pounds. Heifers were steady to 4.00 higher. The supply was moderate with good to very good demand with some softness noted on the heavier feeder steers. Buyers continue to be aggressive especially on higher quality, value added, uniform bunches. Feeder steers medium and large 1 averaging 521 pounds traded at 184.45 per hundredweight. 531 pound heifers brought 155.56.
Lean hogs ended the session 10 to 147 points higher on the improvement in wholesale prices yesterday, the strength in the outside markets, and the weaker U.S. dollar. Much of Wednesday’s activity involved the rolling out of the February contract into April and June futures. The cash market provided very little direction to the futures. February settled .10 higher at 87.62, and April was up 1.47 at 90.35.
Hog market activity was slow to moderate with moderate demand. Barrows and gilts in the Iowa/Minnesota direct trade closed .33 higher at 86.98 on a carcass basis, the West was down .03 at 86.44, and the East closed 1.09 higher at 80.42. Missouri direct base carcass meat price closed steady to 1.00 lower from 80.00 to 81.00. Terminal hogs were steady to an instance of .50 lower from 58.50 to 61.50.
Pork trading was slow to moderate with light to moderate demand and offerings. Pork carcass cutout value was up.10 at 85.27.
Hog slaughter was estimated at 417,000 head, 9,000 less than last week but 136,000 more than last year when a major winter storm disrupted the markets. Processing margins remain poor and packers continue to slow chain speed. Thursday’s bids are expected to be steady to weak with many packers now buying hogs for next week’s delivery.
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