Market News

Boxed beef ends higher

Cattle country was very quiet on Tuesday with no bids reported. While buying interest could develop at midweek, significant trade is not expected until Thursday or Friday. Asking prices are around 167.00 to 168.00 in the South and 268.00 plus in the North. The kill totaled 109,000 head, 1,000 more than last week, but 10,000 smaller than last year.

Boxed beef cutout values were higher on moderate to fairly good demand and light to moderate offerings. Choice boxed beef was up 2.43 at 254.13, and select was up 1.02 at 248.63.

Chicago Mercantile Exchange live cattle contracts were mostly 37 to 117 lower. Moderate pressure developed across the complex as pressure in the feeder cattle and the corn complex led to a lack of buyer interest despite the ability to spark increased interest in the market through the morning. Some additional positioning was seen due to the end of month and quarter. April settled 1.17 lower at 161.32, June was down .65 at 152.32.

Feeder cattle futures settled 50 to 92 lower. The futures contracts bounced higher and lower through the morning with the increased projected acreage in the USDA crop report pushing corn prices lower, and eroding buyer support in the cattle complex. The support in beef values was unable to draw additional interest back into the market. April settled .50 lower at 218.12, and May was down .55 at 216.90.

Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 9,700 head. Compared to last week, feeder steers and heifers were mostly steady. Steer and heifer calves were firm to 3.00 higher on comparable sales. Receipts were slightly higher than expected this week, however some cattle may have been slated for next week but shipped this week instead because of the Easter holiday. Feeder steers medium and large 1 averaging 817 pounds averaged 209.38 per hundredweight. 874 pound heifers brought 190.85.

Lean hogs ended the session 25 to 112 points higher. Strong end of the month buying quickly developed across the lean hog futures complex. Strong gains held, as traders continue to gain leverage from the bullish hogs and pigs report. Contracts pulled back from morning highs, which could limit follow through support heading into the end of the month. April settled 1.12 higher at 60.42 and May was .52 higher at 68.70.

Barrows and gilts in the Iowa/Minnesota direct trade closed .12 lower at 56.47 weighted average on a carcass basis, the West is down .15 at 56.25, and the East is not reported due to confidentiality, Missouri direct base carcass meat price is steady to 1.00 lower from 50.00 to 53.00.

The pork carcass cutout value is down .03 at 68.36.

Noting that U.S. pork prices are low and Chinese prices are twice as high, trade sources are now predicting exports to China could more than double in 2015.

The hog kill on Tuesday was estimated at 426,000 head, 6,000 less than a week ago, but 15,000 more than last year.