Market News

Cash hogs closed higher

The cash cattle market remained untested on Tuesday afternoon with bids and asking prices poorly defined. Some feedlot managers have priced showlists around 162.00 in the South and 260.00 plus in the North. Significant trade volume will probably be delayed until the second half of the week. The kill totaled 109,000 head, even with last week, but 8,000 smaller than last year.

Boxed beef cutout values were sharply higher on fairly good demand and moderate offerings. Choice beef was up 3.16 at 244.24, and select was up 3.27 at 242.65.

Live cattle contracts settled 62 points higher to 1.52 lower with only the front month February higher. The market was pressured by long liquidation and technical selling. Strong beef values may help to bring some needed stability to the market, but a firm turn higher in futures prices is going to also take some outside market support to draw volume back into the complex. February settled .62 higher at 156.65, and April was down 1.52 at 145.57.

Feeder cattle ended the session 157 to 270 lower. Even though triple-digit losses held across the complex, the pull back from early session lows seemed to be pointing to the fact traders may be near a market low before stepping back into the complex through the end of the month. March was 2.47 lower at 196.60, and April was down 2.42 at194.62.

Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 4,000 head. Compared to last week, feeder steers trended mostly 2.00 to 7.00 lower, feeder heifers were sharply lower on a light test. There were not enough calves for a market trend. Frigid temperatures and snow moved into the state and that caused producers to hold off selling this week. Feeder steers, medium and large 1 weighing 731 pounds averaged 208.40 per hundredweight. 661 pound replacement heifers brought 199.99.

Lean hogs settled 25 to 175 points higher. Gains continued to hold through the session, although buyer support seen early in the session significantly decreased. Support came from the higher cash hog prices at midday, but trade volume remained light. April settled .25 higher at 68.57, and May was up .80 at 79.05.

There was an active hog market with good demand on Tuesday. Barrows and gilts in the Iowa/Minnesota direct trade closed 2.49 higher at 64.90 weighted average on a carcass basis, the West was up 2.47 at 64.84, and the East was not reported due to confidentiality. Missouri direct base carcass meat price was steady to 5.00 higher from 52.00 to 58.00. Midwest hogs on a live basis closed steady to 2.00 higher from 36.00 to 44.00.

The pork carcass cutout value was down .59 FOB plant at 71.00.

Higher cash hog prices on Monday seemed to confirm market suspicions’ that the market had finally turned a big corner. Additionally the fact that higher bids on Monday managed to generate moderate receipts clearly suggests country supplies are becoming more manageable.

The hog slaughter was estimated at 407,000 head, 2,000 greater than last week, but down 7,000 from last year.