Market News

Cattle showlists look smaller

Total trade volume in the cattle last week was mixed, significantly higher in Nebraska, somewhat higher in Kansas, but lower in Texas. New showlists appear generally smaller than last week, especially in Kansas, Some showlists have been initially priced around 161.00 in the South, and 263.00 in the North. The kill was estimated at 105,000 head, 5,000 less than last week, and down 9,000 from last year.

Boxed beef cutout values were steady to firm on moderate demand and offerings. Choice beef was .10 lower at 256.89, and select was up .36 at 247.98.

Chicago Mercantile Exchange live cattle contracts settled 70 to 137 lower. The combination of the negative impact of the cattle on feed report on Friday and traders backing away from sharp end of the week gains allowed for prices to slip lower. April settled .70 lower at 160.47, and June was down .92 at 150.27.

Feeder cattle settled 210 to 267 lower. Only the April contract closed higher with the majority of the pressure seen in the May through November contracts. The lack of support through the complex was focused more on adjustments after the cattle on feed report rather than any other factor in the market. April was up .05 at 214.90, and May was down 267 at 211.40.

Feeder cattle receipts at the Oklahoma National Stockyard’s totaled 6800 head today, Feeder steers were lightly tested in the early rounds, with limited sales steady to 2.00 higher. Heifers were steady in an early test. Calves opened steady. Feeder steer calves weighing 500 pounds brought 292.00. 5 to 535 pound heifer calves 249.00 to 250.00.

Lean hogs were 32 points higher to 40 lower. Light to moderate buyer support trickled back into the complex as traders continued to focus on the ability to sustain and draw additional buyer interest into the cash markets as well as push pork values higher as spring demand continues. Support in the spot May contract drew interest from the expectation that overall hog supplies entering plants will gradually slow over the next few weeks. May settled .32 higher at 72.27, and June was down .05 at 79.40.

The pork carcass cutout value was up .92 at 70.86 FOB plant.

Barrows and gilts in the Iowa/Minnesota direct trade closed 2.00 higher with a weighted average of 66.72 on a carcass basis, the West was up 1.95 at 66,52, and the East was not reported due to confidentiality.Missouri direct base carcass meat price closed steady from 48.00 to 59.00. Midwest hogs on a live basis were steady to 1.00 higher from 39.00 to 44.00.

Given evidence of greater spending in hog country on Friday, packers seemed to go home short bought. Leaving short bought typically means arriving short bought, and higher bids again Monday morning could be another sign that seasonal supplies are tightening.

Monday’s hog kill was estimated by USDA at 429,000 head, 1,000 less than last week, but 15,000 more than last year.