Market News

Livestock futures contracts close higher

Cattle buying interest remained limited on Wednesday afternoon, with just a few bids evident in Kansas and Nebraska on a live basis at 157.00, and dressed bids in the North at 250.to 252.00. Asking prices are around 162.00 in the South and 260.00 in the North. Significant trade probably won’t surface until Friday. The kill totaled 101,000 head, 2,000 more than last week, but 13,000 less than last year.

Boxed beef cutout values were sharply higher on moderate to fairly good demand and light offerings. Choice boxed beef was up 2.25 at 246.49, and select was 2.28 higher at 244.93.

Chicago Mercantile Exchange live cattle contracts settled 95 to 170 points higher. The break away from aggressive selling pressure seen over the last week drew strong buyer support back into the complex. Aggressive short covering and signs of recovery in the wholesale beef trade were supportive. February settled 1.70 higher at 158.33, and April was up 1.27 at 146.85.

Feeder cattle ended the session 35 to 142 points higher on moderate to strong buyer interest stepping back to the plate. Concern remains in the market that the buyer interest may not be able to be sustained long term, depending on overall support of beef values through the next couple of weeks. March settled 1.37 higher at 196.97, and April was up 1.22 at 195.85.

Feeder cattle receipts at the Philip Livestock Auction at Philip, South Dakota totaled 4353 head. Compared to two weeks ago steers trended steady to 6.00 lower and heifers steady to 8.00 lower. There was very good demand for several long strings, load lots, and packages of feeders that sold on an active to very active market. Feeder steers medium and large 1 averaging 726 pounds brought 223.77 per hundredweight. 678 pound replacement heifers traded at 243.37.

Lean hogs settled 22 to 285 points higher as light buyer support trickled back into the complex. The focus through the lean pit continued to be driven by the higher cash hog values that have developed over the last few days. The May contract held triple digit gains, and that was likely to skew the overall appearance of the strength of the market as May is so lightly traded very little direction can be taken from these moves. April settled .75 higher at 69.32, and May was up 2.85 at 81.90.

Barrows and gilts in the Iowa/Minnesota direct trade closed 1.15 higher at 66.04 weighted average on a carcass basis, the West was up 1.16 at 65.99, and the East had no comparison of price at 62.60. Missouri direct base carcass meat price closed steady to 2.00 higher from 52.00 to 60.00. Barrows and gilts in the Midwest on a live basis were steady to higher with an instance of up $4.00 from 36.00 to 50.00.

The pork carcass cutout value was down 1.53 at 69.47 FOB plant.

All of a sudden, the cash hog market is on a major roll… Processors must sense solid product demand in the weeks ahead. Additionally, packer margins remain very attractive.

The Wednesday hog kill was estimated by USDA at 406,000 head, down 18,000 from both last week and last year.

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