Market News

Cash hogs were higher but cattle country was quiet

Cattle country remained at a standstill on Tuesday afternoon with bids and asking prices poorly defined. A few of the showlists have been priced around 153.00 in the South and 246.00 plus in the North. Significant trade volume may be delayed until Thursday or Friday. The kill was estimated at 119,000 head, the same as last week, but 2,000 less than last year

Boxed beef cutout values were lower on light demand and light to moderate offerings. The choice was down 1.25 at 232.55 and select 2.06 lower at 222.95.

Live cattle contracts on the Chicago Mercantile Exchange settled 25 to 110 points in the red. Early light pressure gained selling momentum allowing for triple digit losses to hold through the close in the nearby contracts. Concerns remain about the lack of aggressive support in beef values and the inability to maintain buyer support in the lean hogs, however hog contracts ended mostly higher, and cattle ended off the day’s lows. April settled 1.10 lower at 144.75, and June was down 1.02 at 136.47.

Feeder cattle settled 35 to 1.07 lower following the aggressive moves in the grain complex. Traders focused on developing bullishness in both corn and soybean markets which could limit additional market support for both feeder cattle and live cattle markets over the near term. April settled .57 lower at 176.45, and May was down 1.07 at 176.77.

Feeder cattle receipts on Monday at the Oklahoma National Stockyards totaled 8316 head. Compared to last week feeder steers and heifers were 1.00 to 3.00 higher. Stocker cattle and calves were steady to firm. Warmer temperatures and springtime weather moved into the area. Demand was good to very good. The quality was average through attractive. Feeder steers, medium and large 1 averaging 681 pounds brought 189.12 per hundredweight. 621 pound heifers traded at 181.42 at Oklahoma City.

Lean hog contracts settled 42 to 180 points higher. Lean hog futures started aggressively higher following strong support redeveloping in the market. But once these initial orders were secured, it seemed like buyer interest dwindled through the last half of the morning trade. The focus in the market appeared to be moving to traders stepping into the grain market. This could create moderate liquidation through the coming days. April settled 1.80 higher at 127.80, and June was .42 higher at 127.60. Only August closed lower by .12.

Direct trade hogs closed higher with the Iowa/Minnesota up 1.77 with a weighted average of 129.70 on a carcass basis, the West was 1.48 higher at 129.22, and the East at 124.24 up .46. Missouri direct base carcass meat price closed steady from 120.00 to 121.00. Terminal hogs were steady to 2.00 higher from 85.00 to 96.00 on a live basis, with a few in Iowa at 101.00 according to private sources.

The pork carcass cutout value was up .05 at 132.63 FOB plant with hams over 4.00 higher and most other primals lower.

A larger breeding herd as of March 1, more aggressive efforts to fight PED and the expected seasonal decline in cases could help pork producers recover some of the lost supplies by late 2014 and early 2015.

The hog kill on Tuesday was estimated at 415,000 head, 3,000 less than last week, and down 11,000 from last year.