Market News

Feedlot cattle trade was very light

There was light buying activity in the cash cattle trade in parts of the North on Thursday. Most of the dressed business in Nebraska was around 238.00, roughly 1.00 to 2.00 lower than last week’s weighted average. There were also reports of cattle sold with delayed delivery of late April to early May. DTN says some of the out front business has been marked between 234.00 and 236.00. It appeared that packers were interested in covering only short term needs. Trade volume for this week could be quite light. The slaughter was estimated at 110,000 head, even with a week ago, but 9,000 smaller than last year.

Boxed beef cutout values were higher on moderate demand and light to moderate offerings. Choice boxed beef was up 2.13 at 225.88, and select was .96 higher at 215.43.

Live cattle contracts on the Chicago Mercantile Exchange settled 30 to 155 points lower. The initial early pressure that developed in the live cattle market, expanded into triple digit losses in the nearby contracts. The feeder futures led the market lower, and with the market closed on Friday, many traders were willing to take protection ahead of the long holiday weekend break. April settled 1.55 lower at 144.20, and June was down 1.25 at 134.37.

Feeder cattle ended 70 to 185 points in the red. The lack of support in cash markets seemed to limit the overall strength in the summer feeder cattle contracts. Even though beef demand is expected to strengthen through the near term, there are growing concerns about the ability to hold cash values long term. April settled .70 lower at 178.55, and May was down 1.85 at 178.05.

Feeder cattle receipts at the Springfield, Missouri Livestock Marketing Center totaled 1403 head on Wednesday. Compared to last week, steers trended steady, and heifers were steady to 3.00 higher. Holstein steers were not well tested this week, but a lower undertone was noted. Demand was good on a moderate supply. Feeder steers, medium and large 1 averaging 628 pounds brought 199.01 per hundredweight. 572 pound heifers averaged 198.99 at Springfield.

Lean hogs settled 165 higher to 35 lower with only the winter 2015 contracts in the red. The summer contracts gained additional market support from the narrow gains seen early in the session, but most traders appeared to square positions in front of the long weekend. May lean hogs settled .62 higher at 123.50, and June was up 1.05 at 124.82.

Barrows and gilts in the Iowa/Minnesota direct trade closed .50 higher at 115.69 weighted average on a carcass basis, the West was up .55 at 115.65, and the East was not reported due to confidentiality. Missouri direct base carcass meat price closed steady to 3.00 lower from 108.00 to 112.00. Midwest hogs were lightly tested with several interests out of the market for the holiday. Prices were 1.00 lower from 80.00 to 82.00 live.

Market participants viewed the decline in March hog supplies as a signal that spring and summer shortages would be much more severe than expected and responded accordingly. End users of pork that rushed to market in order to get enough supplies around them now may choose to sit on the sidelines as prices declined.

The pork carcass cutout value was 1.08 lower FOB plant at 120.08.

Thursday’s hog slaughter was estimated at 417,000 head, 15,000 more than last week and the same as last year.