Market News

Cattle trade still slow in developing

Feedlot country was quiet on Thursday afternoon following a few scattered sales in Kansas at 160.00 earlier in the day. It would appear that short bought packers still need to buy inventory and trade volume should increase tomorrow. Asking prices are around 162.00 plus in the South and 260.00 plus in the North. However there is a fairly wide gap between bids of 256.00 in the North and 160.00 in the South. The kill totaled 104,000 head, 8,000 below last week, and 13,000 smaller than last year.

Boxed beef cutout values were lower on choice and firm on select on light to moderate demand and moderate offerings. Choice beef was down 1.54 at 255.65, and select was .48 higher at 248.89.

Chicago Mercantile Exchange live cattle contracts settled 35 points lower to 37 higher. February futures at one point were back near the 155.00 level before support weakened and they closed lower. Strong support in feeder futures earlier in the session carried most of the weight through the morning as April and June futures at one point saw gains of over $1.00 per hundredweight. Front months settled lower though on late day selling with the February down .35 at 153.35, and April was .07 lower at 151.80.

Feeder cattle ended the session 27 to 107 points higher as the triple digit gains seen earlier in the session were not able to hold. The focus was on moving prices back above $205.00 a hundredweight in spring and summer contracts and that helped draw renewed support through the entire complex. Trade volume remained sluggish. January settled .27 higher at 215.97, and March was up 1.02 at206.32.

Feeder cattle receipts at the Huss Platte Valley Auction in Nebraska totaled 5420 head on Wednesday. Compared to last week, steers over 500 pounds sold steady to 7.00 lower and the heifers over 500 pounds sold 4.00 to 8.00 lower. Demand was moderate to good throughout the auction. 500 feeder steers medium and large 1 weighing 727 pounds averaged 226.83 per hundredweight. 432 heifers averaging 719 pounds brought 201.59.

Lean hogs settled 30 to 145 points lower. The trade was mixed for much of the morning session, but turned lower on the lack of support in the cash market, and strong morning losses in pork values limited buyer interest. February settled .75 lower at 71.60, and April was down 1.35 at 72.87.

There was slow hog market activity with light demand on Thursday afternoon. Barrows and gilts in the Iowa/Minnesota direct trade closed 2.04 lower at 69.04 weighted average on a carcass basis, the West was down .98 at 69.05, and the East was .01 higher at 67.94. Missouri direct base carcass meat price was steady to 1.00 higher from 62.00 to 66.00. Midwest hogs on a live basis were steady from 43.00 to 50.00.

The pork carcass cutout value was down 2.34 FOB plant at 84.70. All primal cuts were lower.

Iowa barrows and gilts last week averaged 287.1 pounds, 0.9 pounds lighter than the previous week and “only” 3.4 pounds heavier than 2014.

The Thursday hog kill was estimated at 436,000 head, 4,000 greater than last week, and up 5,000 from last year.