Market News

A few cattle trade in the north

Cattle country was generally quiet on Wednesday afternoon with scattered sales in the North reported from 256.00 to 257.00 near steady with Tuesday’s decline. More significant trade volume will be delayed until Thursday or Friday. Some showlists are priced around 162.00 plus in the South and 262.00 plus in the North. The kill totaled 110,000 head, 6,000 more than last week and 10,000 smaller than last year.

Boxed beef cutout values were weak to lower on moderate demand and moderate to heavy offerings. Choice boxed beef was down 1.05 at 257.18, and select was .42 lower at 248.41.

Chicago Mercantile Exchange live cattle contracts settled 32 to 115 points higher. After appearing dead in the water for much of the session the market turned mixed near midday and settled solidly higher. Moderately higher boxed beef prices and lower corn values were supportive to the market. February settled .65 higher at 153.70, and April was up .80 at 151.87.

Feeder cattle ended the session 122 to 282 points higher on light support. The lack of the direction in the market earlier in the day created some later day buyer support and sparked additional interest through the end of the session. January settled 1.22 higher at 215.70 and March was up 2.82 at 205.30.

Feeder cattle receipts at the Ozarks Regional Stockyards at West Plains, Missouri totaled 4537 head on Tuesday. Compared to last week, feeder steers and heifers trended 5.00 to 15.00 lower with spots of 20.00 lower. The demand was moderate to good on a heavy supply. Feeder steers Medium and large 1-2 averaging 671 pounds traded at 216.88 per hundredweight. 574 pound heifers brought 214.91 at West Plains.

Lean hogs settled 45 points lower to 57 higher. Lean hogs broke away from the sharp losses seen earlier in the week. Support came from sharply higher pork values on Tuesday and moderate increases at midday. Additional support came from the rally in cattle futures. February settled .57 higher at 72.35, and April was up .45 at 74.22.

There was slow to moderate hog market activity with light to moderate demand. Barrows and gilts in the Iowa/Minnesota direct trade closed 2.38 higher at 71.08 weighted average on a carcass basis, the West was up 1.28 at 70.05, and the East was 1.65 lower at 67.93. Missouri direct base carcass meat price was steady to 2.00 lower from 62.00 to 65.00. Midwest hogs on a live basis were steady to higher to instances of 1.00 lower from 43.00 to 50.00.

The pork carcass cutout value was up 1.13 at 87.04 FOB plant with all cuts higher.

Pork processing margins are terrific with the carcass value now floating more than $10 over the latest cash index. Packers have plenty of incentive to support the cash trade.

The Wednesday hog kill was estimated at 431,000 head, 2,000 less than last week, but 20,000 more than last year.