Market News

Cattle trade early and lower

Cattle traded earlier than expected this week. USDA Mandatory reported light to moderate trade volume in several areas. Dressed sales in the North are generally 4.00 lower than last week’s weighted average basis Nebraska at 253.00. Trade in Kansas and Texas is about 3.00 lower from 157.50 to 158.00. Business seemed to slow during the afternoon according to DTN, either because of better selling resistance or still lower packer bids. The kill totaled 110,000 head, 3,000 more than last week, but 7,000 less than last year.

Boxed beef cutout values were steady on light to moderate demand and offerings. Choice boxed beef was up .24 at 260.06, and select was .03 lower at 249.52.

Chicago Mercantile Exchange live cattle contracts settled unchanged to 80 points lower. Futures were moderately lower due to long liquidation and some signs of weakness in feedlot country. Given the fact that Tuesday’s rally seemed technically insignificant, specs and commercials returned to defensive attitudes evident on Monday. April was unchanged at 156.30, and June was down .60 at 146.02.

Feeder cattle traded 5 points higher to 25 lower. The feeders followed their live counterparts lower. Trade volume was reported to be very light with a general lack of buying interest. April settled .10 lower at 212.55, and May was down .22 at 206.75.

Feeder cattle receipts at the Ozarks Regional Stockyards at West Plains, Missouri on Tuesday totaled 2637 head. Compared to last week feeder steers traded 4.00 to 8.00 lower with heifers 3.00 to 6.00 lower. Yearling steers and heifers, although lightly tested traded 5.00 to 10.00 lower. The demand was good on a moderate supply which consisted of 44 percent steers, 10 percent bulls, and 43 percent heifers. Nearly 23 percent of the run weighed over 600 pounds. Feeder steers medium and large 1 averaging 572 pounds traded at 260.28 per hundredweight. 516 pound heifers brought 246.25.

Lean hogs settled 55 to 170 points in the red. Lean futures struggled, pressured by long liquidation and ideas that seasonal bullishness may already be built into the board. The pork carcass cutout value in the morning report was significantly lower with losses in all primals except the bellies. May settled .90 lower at 70.70, and June was down 1.65 at 75.95.

There was an active hog market with good demand on Wednesday. Barrows and gilts in the Iowa/Minnesota direct trade closed .57 higher at 63.01 weighted average on a carcass basis, the West was up .55 at 62.98, Eastern hogs were .52 higher at 61.94. Missouri direct base carcass meat price was steady from 50.00 to 58.00 Midwest hogs on a live basis closed .50 lower to 1.00 higher from 39.00 to 50.00.

The pork carcass cutout value FOB plant was down 1.13 at 67.48 in the afternoon report.

Between excellent margins and an ocean of chops, sausage, and bacon at their disposal, retailers can be expected to aggressively feature pork through the late spring and early summer.

Wednesday’s hog kill at 428,000 head is 3,000 less than last week, but 11,000 more than last year.