Market News

Hog and cattle slaughter is lighter than last week

The main item of business in cattle country on Monday was the distribution of the new showlists. This week’s offering of cattle is generally lower with the exception of Kansas which is showing more cattle for sale. Bids and asking prices are not well defined, private sources say some early asking prices are around 149.00 to 150.00 in the South and 242.00 plus in the North. The kill was estimated by USDA at 110,000 head, 5,000 less than last week and down 11,000 from last year.

Boxed beef cutout values were firm on choice and weak on select on moderate to fairly good demand and moderate offerings. Choice boxed beef was .40 higher at 222.52, and select was down .41 at 212.05.

Chicago Mercantile Exchange live cattle contracts settled10 to 50 points higher with only October lower. Movement in the live cattle futures was narrow and slow to develop as traders focused on the potential of firming beef values through the week based on upcoming demand growth. Traders looked for some support from traditional seasonal market rallies that could help to sustain current price levels. But futures closed off the day’s highs. April was up .50 at 145.35, and June was up .12 at 135.90.

Feeder cattle contracts settled 2 to 50 points higher. Overall volume in the complex was light, which allowed the traders to focus on both the outside markets direction as well as the recent stability in the live cattle complex. April settled .50 higher at 180.00 and May was up .35 at 180.32.

Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 5500 head. Compared to last week, feeder cattle and calves opened steady with continued very good demand. Feeder steer calves, medium and large 1 weighing 500 to 600 pounds traded from 211.00 to 222.00 per hundredweight. 550 to 600 weight heifers brought 185.00 to 194.50.

Lean hog contracts settled 35 to 195 higher with the exception of the April contract that expired at noon at 124.80 down .12. Traders focused on the expiration of the front month contract and that allowed additional triple digit support to develop in the May through August contracts. The PEDv induced tight supplies has once again gained the attention of traders. But it is uncertain just how much follow through support this round of buying will instill given that very little new PED data has developed to quantify market tightness over the last couple of days, according to DTN analyst Rick Kment. May lean hogs settled 1.07 higher at 121.67 and June was up 1.42 at 122.65.

There was slow hog market activity with light demand on Monday afternoon. Barrows and gilts in the Iowa/Minnesota direct trade closed. 66 higher with a weighted average of 119.03 on a carcass basis. Western hogs were up .47 at 118.81 and the East was down 1.81 at 117.36. The Missouri direct base carcass meat price was steady from 116.00 to 117.00. Terminal hogs closed steady with an instance of 5.00 lower from 81.00 to 98.00.

The pork cutout value FOB plant was .35 lower in the afternoon report at 124.41.

Cash hog values erode as packers focus on slowing chain speed rather than to continue paying higher prices. Prices could continue to fall through the week with the expiration of April futures.

The Monday hog kill was estimated at 377,000 head, 27,000 less than last week and down 25,000 from last year.

 

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