Market News

Cash cattle trade slow to develop

By late afternoon there were just a few scattered cattle sales in Nebraska at 252.00 on the dressed basis. Packers still need to buy cattle, but tight fisted feedlot manages held firm on asking prices, no doubt encouraged by the way most cattle futures closed higher. Buyers may find it necessary to raise bids in order to secure minimum slaughter needs. The weekly cattle kill at 523,000 head is 2,000 above the previous week, but 47,000 less than last year.

Boxed beef cutout values were firm on moderate to fairly good demand and moderate offerings. Choice boxed beef was up .55 at 247.58, and select was .67 higher at 245.57.

Chicago Mercantile Exchange live cattle contracts closed mixed on Friday. The market was higher in the early trade, but was pressured later in the session. There was some profit taking following the recent gains. February went off the board at noon at 158.00, down 3.12, the April contract was 1.90 higher at 151.70.

Feeder cattle ended the session 160 points higher to 55 lower. Traders focused more on end of the month position taking than any fundamental or technical shift which developed in the market. March feeders settled 1.60 higher at 201.90, and April was up 1.27 at 200.32. Only March and April were in the black.

Feeder cattle receipts at Missouri Auctions this week totaled 17,157 head. Compared to last week, weather prevented a good test of the market for a second week in a row. Generally auctions either had very light runs or no sales at all. Locally, price trends were all over and it was very difficult to really determine which way the market wanted to go. Most prices were 5.00 to 10.00 lower on calves and steady to 5.00 lower on yearlings. Feeder steers medium and large 1 weighing 677 pounds averaged 226.86 per hundredweight. 680 pound heifers traded at 203.12.

Lean hogs settled 87 higher to 45 points lower with only July and August in the red. Hogs traded mixed in a wide and volatile range through the morning on Friday with the focus on firming support in the cash markets. End of the month position taking appeared to be the main order of business. Fundamental market news appeared to be a very small factor in end of the day direction and activity. April settled .30 higher at 67.47, and May was up .60 at 79.90.

Barrows and gilts in the Iowa/Minnesota direct trade closed .12 lower 66.26 weighted average on a carcass basis, the West was down .15 at 66.01, and the East was not reported due to confidentiality. Missouri direct base carcass meat price was a 1.00 higher from 55.00 to 64.00. Midwest hogs on a live basis closed steady in a light test from 36.00 to 40.00.

Pork carcass cutout value was up 2.38 at 70.51 FOB plant. All primal cuts were higher.

Retailers are enjoying excellent pork margins, plenty of incentive to plan aggressive features in the months ahead. Furthermore, the average price of retail pork last month slightly declined to $3.98 while retail choice beef increased to $6.33, another new record. Consumers should see pork as more and more attractive compared with beef.

The weekly hog kill was estimated at 2,262, 000 head, 18,000 less than last week, 120,000 more than last year.