Market News

Showlists look smaller

As expected. Cattle country is quiet with bids and asking prices not developed, although a few asking prices have been suggested around 163.00 in the South and 263.00 in the North. The new showlists collected earlier in the day appear to be generally smaller, especially in the South. The kill was estimated by USDA at 113,000 head, 8,000 more than last week, but 5,000 less than last year.

Boxed beef cutout values ended the day firm to higher on moderate demand and light to moderate offerings. Choice boxed beef was up 1.00 at 255.64, and select was up .68 at 243.90.

Live cattle contracts settled 62 to 155 points higher on the Chicago Mercantile Exchange on Monday. There were firm triple digit gains in the nearby contracts. The firmness in feeder cattle contracts appeared to be the most supportive factor. Additional support came from the significantly higher boxed beef cutout values at midday. June cattle settled 1.55 higher at 150.72, and August was up 1.30 at 149.12.

Feeder cattle futures were 152 to 240 points higher as early week buyer support quickly reentered the market. All contracts held triple digit gains based on firm buyer interest quickly stepping back into the market due to early month trade activity. May was up 1.50 at 215.15, and August was up 2.25 at 217.32.

Feeder cattle receipts at the Oklahoma National Stockyards totaled 10,200 head on Monday. Compared to last week, feeder steers and heifers traded mostly steady in the early rounds. Steer and heifer calves were not well tested but a sharply higher undertone was noted. Early demand was good for all classes. Yearling steers, medium and large 1 weighing 750 to 800 pounds ranged from 212.50 to 218.00. 700 to 765 pound replaceme3nt heifers brought 211.00 to 235.25.

Lean hogs settled 47 to 92 points higher. The lightly traded May contract held the strongest gains despite the lack of volume and open interest in the contracts. Trade volume remained stable through the session as increased focus was placed on the potential for additional demand growth and firming cash markets. May settled .92 higher at 76.92, and June was up .57 at 81.82.

There was slow hog market activity with light demand on Monday. Nationally the market was .16 higher at 74.04, Barrows and gilts in the Iowa/Minnesota direct trade closed .81 higher at 75.74 weighted average on a carcass basis, the West was up .74 at 75.51, and the East was not reported. The Missouri direct base carcass meat price was steady to 4.00 higher from 58.00 to 68.00. Midwest hogs on a live basis closed steady to 2.00 higher instances of up 5.00 from 46.00 to 55.00.

The pork carcass cutout value FOB plant was up .46 at 74.32. Only the loin and belly primals were lower.

Given the fact that the pork carcass value is lagging behind the exploding cash hog market, poorly margined packers are likely to be more defensive this week when it comes procurement chores.

The hog slaughter was estimated at 425,000 head, 4,000 less than last week, but 40,000 more than last year.