Market News

Iowa hog weights lower than last week

USDA Mandatory reported a moderate cattle trade in Kansas on Thursday on moderate demand. Compared to last week, live sales were mostly 2.00 lower at 126.00. Trading was inactive in all other areas. Northern packers would probably like to buy more cattle but remain cautious in the face of sharply discounted futures and uncertain beef demand. Certainly limited trade volume totals in Nebraska, Iowa and Colorado suggest that more business is still waiting in the wings. Asking prices are probably around 128.00 live and 205.00 plus dressed. The kill totaled 119,000 head, even with last week, but 10,000 below last year.

Boxed beef cutout values were firm on moderate demand and light to moderate offerings. Choice boxed beef was up .82 at 205.49, and select was up .40 at 191.03.

Chicago Mercantile Exchange live cattle contracts settled 22 to 62 points higher. The initial pressure in the cattle futures was quickly replaced by moderate to strong movement. The additional firmness of beef values sparked increased buyer interest. DTN says that for the time being at least less focus is being placed on any less demand pressure through the summer months due to the record high choice beef values seen through the end of the week. June settled .35 higher at 120.55, and August was up .52 at 120.52.

Feeder cattle settled 15 to 102 points higher as moderate buyer support stepped back into the feeder complex. Although the overall outlook of the market has changed very little, and strong double-digit corn markets are increasing production costs, buyers have returned to nearby contracts. May settled .15 higher at 135.75, and August was up .65 at 145.97.

Feeder cattle receipts at the Springfield, Missouri Livestock Marketing Center totaled 1975 head on Wednesday. Steers traded 2.00 to 6.00 lower and heifers were mostly 2.00 to 4.00 lower. Demand was moderate for most weights, but good for Holsteins suitable for grazing. Feeder steer calves medium and large 1 averaging 676 pounds traded at 131.98 per hundredweight. 626 pound heifers averaged 131.69.

Lean hogs settled 37 to 120 points in the red with only May futures higher. Losses developed as selling pressure tied to squaring positions following gains over the previous trading session. Direct trade hogs were sharply lower in the West in the morning report and that weighed on futures. May settled .02 higher at 92.00 and June was down 1.20 at 90.57.

There was moderate to moderate active market activity with moderate demand in the cash hogs on Thursday. Barrows and gilts in the Iowa/Minnesota direct trade closed 1.37 lower at 90.15 on a carcass basis, the West was down .78 at 90.12, and the East was 1.33 higher at 88.69. Missouri direct base carcass meat price was steady to 1.00 higher from 84.00 to 86.00. Terminal hogs closed steady to 1.00 higher from 58.00 to 61.00.

The pork carcass cutout value FOB plant was up 1.45 at 89.17 on a negotiated basis.

Iowa barrows and gilts averaged 276.8 pounds last week, 1.2 pounds lighter than the previous week and only 0.1 pounds heavier than 2012. The trend should favor lower weights through midsummer.

The Thursday hog slaughter was estimated at 412,000 head, 2,000 more than last week, but 7,000 less than last year.