Market News

Direct hogs in the west close higher

Cattle country was very quiet on Monday afternoon as packers limited their efforts to the collection of the new showlists. This week’s fed offering appears to be generally larger with only Texas showing fewer ready slaughter steers and heifers. A few asking prices have been floated around 148.00 in the South and 238.00 plus in the North. The slaughter totaled 103,000 head, 12,000 smaller than last week and 19,000 below 2013.

Boxed beef cutout values were higher on moderate to fairly good demand and light to moderate offerings. Choice beef was up 2.71 at 229.06, and select was 2.84 higher at 218.07.

Live cattle contracts on the Chicago Mercantile Exchange closed 17 points higher to 75 lower. Aggressive pressure developed through the April contracts despite the initial attempt to keep the trade contained to a narrow trading range. The lead contract was as much as 1.57 lower and pushed below 143.00, a close at that level could have sparked additional pressure through the front month contracts. However the contract did see a rebound and closed off the low of the day. April settled .75 lower at 143.45, and June was up .17 at 134.55.

Feeder cattle settled 5 to 72 points higher on the moderate to strong losses in the corn futures market. May settled .05 higher at 178.10 and August was .50 higher at 181.90.

Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 6200 head. Compared to last week feeder steers opened steady to 2.00 higher. Feeder heifers were lightly tested with a few sales steady. Steer and heifer calves opened steady. The early quality was mostly plain to average. Yearling steers weighing 650- to 700 pounds traded from 189.50 to 191.00. A part load of replacement heifers weighing 635 traded at 182.50.

Lean hogs settled 20 to 270 lower. Traders sought additional direction from wholesale and retail pork demand. But the concern that buyer support will ease now that the Easter season is over created some short term concern through the complex. May settle 2.709 lower at 120.80, and June was down 2.47 at 122.35.

Barrows and gilts in the Iowa/Minnesota direct trade closed 1.72 higher at 115.73 weighted average on a carcass basis, the West was up 1.52 at 115.47, and the East was 1.02 lower at 110.56. Missouri direct base carcass meat price was steady to 4.00 lower at 108.00. Barrows and gilts on a live basis in the Midwest closed steady with an instance of 3.00 to 5.00 lower from 81.50 to 96.00.

The pork cutout value was 1.92 lower at 119.42 FOB plant

After two weeks of significantly lower hog sales, many expect greater country spending now that Easter has come and gone, and the next major shift in ready numbers of barrows and gilts will be lower regardless of the exact level of PEDv death loss through the winter.

Some plants were dark on Monday for Easter. The hog slaughter was estimated at just 273,000 head, 104,000 less than last week and down 136,000 from last year.