Market News

A few cattle trade on Thursday

USDA Mandatory reported cattle trade in Western Nebraska and Colorado. The trade was light on light to moderate demand with live sales at 160.00. In Kansas a few sales were reported steady with Wednesday at 158.00. Trade was mostly inactive in all other regions. The kill was estimated at 105,000 head 3,000 more than last week, but 12,000 less than last year.

Boxed beef cutout values were steady on choice and higher on select on moderate demand and offerings. Choice beef was .05 lower at 260.10 and select was up 1.52 at 251.04.

Chicago Mercantile Exchange live cattle contracts settled 200 to 300 points higher. Live contracts were on fire on Thursday working to emerge from the huge hole dug by the bears on Friday and Monday. Thursday’s rally seemed tied to aggressive short covering and bears taking profits ahead of Friday’s on feed report. April settled 3.00 higher at 159.30 and June was also up 3.00 at 149.02.

Feeder cattle ended the session 172 to 450 points higher. Feeders ran with the live pit. Short covering triggered some technical buying. The soon to expire April was obviously cooler than severely discounted deferred as they stuck closer to the cash index. April was 1.72 higher at 214.27, and May was up 4.50 at 211.25.

Feeder cattle receipts at the Huss Platte Valley Auction in Nebraska totaled 4127 head. Compared to two weeks ago steers under 800 pounds sold steady to 5.00 higher, over 800 pounds $5.00 to 6.00 lower. Heifers under 700 pounds were unevenly steady, over 700 pounds steady to 5.00 lower. Demand was good on offerings suited for summer turn out. Feeder steers averaging 773 pounds brought 227.91 per hundredweight. Heifers weighing 721 pounds traded at 212.34.

Lean hogs settled 80 to 237 points higher. The summer lean contracts made a renewed charge on $80.00. This could be a major challenge to rise above that psychological level according to John Harrington at DTN. Board bulls may need the help of the actual emergence of constructive, seasonal fundamentals, shrinking country receipts, and improving carcass value. May settled 1.22 higher at 71.92, and June was up 2.37 at 78.32.

Barrows and gilts in the Iowa/Minnesota direct trade closed .89 higher at 63.88 weighted average on the carcass basis, the West was up .88 at 63.85, and the East was not reported due to confidentiality. Missouri direct base carcass meat price was steady from 50.00 to 58.00. Midwest hogs on a live basis closed steady with an instance of 4.00 lower from 39.00 to 46.00.

The pork carcass cutout value was 2.19 higher FOB plant at 69.67. All primal cuts except the bellies were higher.

Frozen pork as of March 31 totaled 668.6 million pounds, 16% greater than 2014 but 3% less than the prior month and generally below private anticipations.

The hog slaughter was estimated at 428,000 head, down 3,000 from last week, but 11,000 more than last year.