Market News

Cattle trade has a weak undertone

A light to moderate cattle trade was evident in parts of the North on Friday afternoon, with live sales from 158.00 to 160.00 and dressed from 253.00 to 256.00. Both live and dressed sales definitely have a weak undertone compared to last week. Although buyers in the North may have to pick up additional sales, it looks like the South completed trading. The weekly kill was estimated by USDA at 524,000 head, 13,000 smaller than both last week and a year ago.

Boxed beef cutout values were firm to higher on moderate demand and light to moderate offerings. Choice beef was up .39 at 240.31 and select was 1.08 higher at 237.79.

Chicago Mercantile Exchange live cattle contracts settled 120 to 297 points lower. There was a late week selloff, leaving cattle futures sharply lower in the nearby contracts while the deferred issues suffered moderate losses. February settled sharply lower, sparking additional uncertainty about the ability to keep prices at the current trading range thorough the end of the month. February was down 2.22 at 156.70 and April was down 2.97 at 148.52.

Feeder cattle ended the session 215 to 337 lower. The early mixed trade gave way to triple digit losses through the entire complex. The concern that cattle on feed numbers may not come in along projected levels factored into the late week pressure in the feeder cattle trade. March settled 3.37 lower at 199.17, and April was down 3.22 at 198.35.

Lean hogs settled 57 higher to 87 lower. The lean futures posted triple gains early in the session, but the support quickly eroded with only the nearby contracts ending with moderate gains. The lack of support in the cattle complex and uncertainty about sustained cash support worked to push deferred futures lower. April settled .35 higher at 67.40, and May was up .57 at 77.30.

Feeder cattle receipts at Missouri auctions this week totaled 15,702 head. Compared to last week, feeder steers and heifers sold mostly steady. Supplies were light and nearly half of the reported auctions around the state remained dark due to the winter storm that brought sleet, freezing rain, and snow to the majority of the state. Feeder steers, medium and large 1 averaging 721 pounds traded at 221.24 per hundredweight. 765 pound replacement heifers traded at 210.69.

Barrows and gilts Iowa/Minnesota direct trade closed .37 higher at 59.57 weighted average on a carcass basis, the West was down .10 at 59.04, and the East was not reported due to confidentiality. Missouri direct base carcass meat price was steady from 52.00 to 53.00. Midwest hogs on a live basis closed steady from 34.00 to 42.00 in a light test.

The pork carcass cutout value was down .82 at 71.50 FOB plant. Bellies were over $4.00 lower, but hams and ribs were higher.

Given Thursday’s surge in country hog sales, virtually the biggest seen since late last year, the cash market may be finally waking up from its long winter nightmare. Are buyers beginning to see tightening numbers, better pork demand or both?

The weekly hog slaughter is estimated at 2,285,000 head, 63,000 more than last week, and 174,000 more than last year.

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