USDA Mandatory is reporting cattle trading was moderate in the South Plains on moderate demand. Compared to last week, live sales sold 1.00 lower at 123.00. In Eastern Nebraska and Iowa, dressed sales trended mostly 2.00 lower at 198.00 on moderate demand with a few sales at 199.00 in Eastern Nebraska. Live sales in Iowa were .50 lower at 123.00 to 123.50., with Eastern Nebraska live sales 1.00 lower at 123.00. The weekly cattle slaughter was estimated at 589,000 head, 19,000 below the previous week and 38,000 less than 2011. This is the first time that packers have killed fewer than 600,000 in a none holiday week since April of 2009.
Boxed beef cutout values were weak on light to moderate demand and offerings. Choice boxed beef was down .07 at 183.12, and select was .45 lower at 178.08.
Chicago Mercantile Exchange live cattle contracts settled 35 to 152 points lower on weaker cash markets and pressure from technical trading. Traders appeared to be taking a longer term view on the market rather than focusing solely on the potential cash market. Weaker boxed beef values at midday also weighed on the live contracts. February settled 1.52 lower at 123.62, and April was down 1.50 at 127.40.
Feeder cattle ended the session 37 to 92 points lower on a lack of support from the live pit. Softer corn values gave some support to the complex. Trade was pretty much at a standstill late in the session. March settled .92 lower at 154.55, and April was down .90 at 157.02.
Feeder cattle receipts at Missouri auctions this week totaled 36,601 head. Compared to last week, feeder steers weighing less than 750 pounds sold 2.00 to 4.00 higher, over 750 pounds steady to 2.00 lower. Feeder heifers sold 2.00 to 5.00 higher with several weighing less than 550 pounds 6.00 to 8.00 higher. The feeder supply was moderate. Receipts are starting to taper off although it has not happened as quickly as many had expected, especially given the mild weather this winter which has resulted in very few days in which transportation of cattle has been an issue. 1194 head of feeder steers medium and large 1 weighing 572 pounds traded at 176.88 per hundredweight. 1046 heifers averaging 575 pounds brought 157.80.
Lean hog contracts settled 47 higher to 82 points lower in light trade. The lackluster cash market movement in the morning report softened early support in the nearby contract. Wholesale prices have weakened and processors continue to face negative profit margins. Some packers have slowed chain speed as the seasonal surge in demand has not materialized. February settled .05 lower at 87.52, and April was down .82 at 88.92.
Hog market activity was slow with light demand. Iowa/Minnesota hogs were 1.43 lower at 85.23 on a carcass basis, the West was down 1.31 at 85.82, and the East was 2.48 lower at 81.30. Missouri direct base carcass meat price is steady from 80.00 to 81.00. Terminal barrows and gilts closed steady to 1.00 higher from 57.00 to 60.00.
Pork trading was slow with light demand and light to moderate offerings. Pork carcass cutout value was .15 higher at 85.10.
This week’s hog slaughter at 2,137,000 head is 30,000 less than last week, but, 78,000 more than last year when much of the major production areas were hit by a snow storm. Poor profit margins for packers could once again keep the chain speed slower than normal next week.
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