Market News

Livestock futures stage a turnaround

Scattered cattle business was evident in several areas Thursday afternoon, but for the most part country trade remained limited. A few cattle traded in Nebraska on a live basis at 159.00, and in Iowa and Nebraska at 250.00 dressed. Trade volume totals suggest we should see more activity surface on Friday. It will be interesting to see if packer bids improve supported by further recovery in cattle futures. The kill totaled 112,000 head, 2,000 more than last week, but 9,000 less than last year.

Boxed beef cutout values were weak to lower on very light to light demand and light offerings. Choice beef was down .46 at 241.95, and select was .81 lower at 230.32.

Chicago Mercantile Exchange live cattle contacts settled with triple digit gains of 212 to 297 points on Thursday. Traders focused on trying to reestablish a sense of stability at the lower levels. Nearby futures appeared to start to set roots around $156 to 157 per hundredweight, but there is expected to be some additional market volatility over the coming weeks. The holiday season typically erodes overall trade volume and can easily spark some additional market shifts which will put the focus on market direction through the first few months of 2015. December settled 2.27 higher at 158.70 and February was up 2.70 at 158.52.

Feeder cattle ended the session 47 to 300 points higher. The breakaway from consistent limit down trade over the last few trading session seemed to give additional support to the complex. Although the market remains cautious, the ability for traders to see positive price moves seemed to help to spark some spillover interest in the live cattle market. January settled .47 higher at 217.07, and March was up 1.52 at 213.77.

Feeder cattle receipts at the St. Joseph, MO Stockyards totaled 2,000 head on Wednesday. Compared to last week, a mostly sharply lower market. There were many instances where the market was down 30.00 to 40.00 on fleshy un-weaned calves, feeder bulls, singles, odd packages and less attractive quality feeders. Feeder steers medium and large 1 averaging 617 pounds brought 251.91 per hundredweight. 623 pound heifers averaged 223.83.

Lean hogs settled 55 to 187 points higher. Firm to triple digit gains held through the session with traders putting most of their attention on the bounce higher in the cattle complex. This allowed buyer support to step into the entire livestock market, allowing the firm triple digit gains to be generally uncontested at this point. Soft market fundamentals will likely limit further long term support, but short term position squaring was the main order of business on Thursday. February settled 1.40 higher at 81.87 and April was up 1.32 at 83.22.

Barrows and gilts in the Iowa/Minnesota direct trade closed 1.58 lower at 76.05 on a carcass basis, the West was down 1.76 at 75.91, and the East was 1.11 lower at 76.64. Missouri direct base carcass meat price3 was steady to 1.00 lower from 74.00 to 77.00. Midwest hogs on a live basis closed fully steady from 52.00 to 60.00.

The pork carcass cutout value FOB plant was up .14 at 87.38. Only butts and picnics were higher.

Private analysts believe the monthly cold storage to be unveiled early next week will contain smaller stockpiles of frozen pork.

The hog kill was estimated at 430,000 head, 2,000 more than last week, but 6,000 less than last year.