Market News

Cattle and hog futures close higher

The cash cattle trade was untested on Monday afternoon as producers and packers complete the distribution of the new showlists. This week’s offering appears to be generally smaller than last week with only Kansas showing a few more steers and heifers. A few showlists have been priced around 129.00 to 130.00 South and 207.00 plus in the North. The cattle kill was estimated at 116,000 head, 8,000 more than last week and 18,000 more than 2012.

Boxed beef cutout values closed weak on light demand and light to moderate offerings. Choice boxed beef was down .37 at 190.95, and select was .55 lower at 186.46.

Chicago Mercantile Exchange live cattle contracts settled 52 higher to 05 lower with just a couple of winter contracts in the red. Support in the cattle complex came from short covering and early week profit taking. The widespread gains earlier in the session followed strong moves in the feeder cattle and lean hog futures and was expected to spur additional support. But additional buyers could not be found allowing for prices to back away from early gains. April settled .25 higher at 126.27, and June was up .52 at 122.02.

Feeder cattle ended 17 to 77 points higher in moderate trade volume. The lack of movement in the corn market seemed to have created some additional momentum in feeder futures.  April settled .17 higher at 142.75, and May was up .45 at 144.75.

Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 6850 head. Compared to last week, feeder steers and heifers opened steady in an early light test. Demand was moderate to good for feeder cattle. Stocker cattle and calves were lightly tested and firm. Demand was very good, especially for thin fleshed cattle headed for grass. Feeder steers, medium and large 1 weighing 800 to 850 pounds traded from 129.00 to 137.00. 820 pound heifers brought 122.50 per hundredweight.

Lean hogs settled 40 to 117 points higher as light to moderate support developed early in the week. This helped deferred futures end over 1.00 higher. Traders looked for additional direction in the wholesale pork value at the end of the day. April settled .50 higher at 80.52, and May was up .40 at 87.30.

There was slow market activity with light demand in the cash hogs on Monday. Barrows and gilts in the Iowa/Minnesota direct trade closed .99 lower at 79.36 on a carcass basis, the West was down 1.79 at 78.50and the East was up .56 at 76.35. Missouri direct base carcass meat price closed steady to 4.00 higher from 71.00 to 79.00. Terminal hogs closed 1.00 higher to 2.00 lower with tops from 50.00 to 54.50 live.

Pork carcass cutout value according to the mandatory report was down .07 at 80.53 on Monday.

The pork carcass value firmed on Friday, supported by rebounding demand for ham and belly cuts. And the wholesale composite should be better supported by fresh cuts once warmer weather is conducive to outdoor grilling.

Monday’s hog slaughter at 416,000 head is 126,000 more than last week, and 133,000 greater than last year.