Market News

Cattle trade very limited on Friday

The cattle trade remains very limited with margin poor packers reluctant to move toward higher asking prices. One regional buyer in the North bought a few cattle at 263.00, 3.00 to 4.00 higher than last week’s weighted average. Yet asking prices are even higher, around 165.00 to 166.00 in the South and 265.00 plus in the North. Feedlot psychology was further supported by decent closes on the Chicago Mercantile Exchange. The weekly cattle kill was estimated at 531,000 head, 13,000 more than last week, but 57,000 less than last year.

Boxed beef cutout values were mostly steady on light to moderate demand and offerings. Choice boxed beef was up .13 at 250.80, and select was down .25 at 246.71.

Chicago Mercantile Exchange live cattle contracts settled10 to 97 points higher. The early mixed trade was replaced by moderated buyer support. The combination of optimism surrounding the potential for higher cash cattle trade and the aggressive price strength seen in feeder cattle futures moved summer contracts higher but closing off of triple digit gains seen earlier. April settled .95 higher at 162.62, and June was up .97 at 152.97.

Feeder cattle settled 182 to 237 points higher. End of the week buying activity quickly developed Friday morning with prices surging higher. The focus on increased open interest and the recent direction of the weekly chart created some underlying bullishness to flood into the market. April settled 2.05 higher at 219.27, and May was up 2.35 at 218.12.

Feeder cattle receipts at Missouri Auctions this week totaled 32,738 head .Compared to last week, feeder steers and heifers sold steady to 5.00 higher, with instances of 10.00 higher. The feeder supply was moderate. Reporters continue to note many calves with an abundance of flesh. Demand remains good to very good. 528 head of feeder steers medium and large 1 averaging 625 pounds traded at 252.06 per hundredweight. 534 head of 625 pound heifers averaged 226.16.

Lean hogs settled 15 higher to 27 points lower with only April and May in the black. Trade was sluggish through the session with prices mixed in a narrow range. There was little direction from market fundamentals at the end of the week. April settled .15 higher at 61.12, and May was up .15 at 68.17.

Barrows and gilts in the Iowa/Minnesota direct trade closed .84 lower at 55.91 weighted average on a carcass basis. The West was .84 lower at 55.86, and the East was .35 higher at 54.91. Missouri direct base carcass meat price closed steady from 51.00 to 54.00. Midwest hogs on a live basis were fully steady from 33.00 to 44.00.

The pork carcass cutout value was down 1.90 at 65.35 FOB plant, all cuts were lower.

The quarterly hogs and pigs report came in close to pre-report estimates and indicates continued expansion of the U.S herd. More information and analysis can be found in the news section of the web site.

The weekly hog slaughter at 2,270,000 head was up 33,000 from last week, and 239,000 more than last year.

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