Market News

Cattle and hog futures close higher

With the exception of a few trades in the North from 159.00 to 160.00 live and 252.00 dressed, the cash cattle trade was relatively quiet on Thursday afternoon. Further business could be delayed until later today, or tomorrow. Asking prices are around 255.00 plus in the North and 162.00 plus in the South. The kill was estimated at 113,000 head, 1,000 less than last week, and 4,000 smaller than last year.

Boxed beef cutout values were sharply lower on light demand and moderate offerings. Choice beef was down 2.76 at 262.32, and select was down 1.74 at 249.32.

Chicago Mercantile Exchange live cattle contracts settled 37 to 122 points higher. Buying seemed to be sparked by short covering ahead of the May 1 cattle on feed repot as well as the general stability of the cash premiums. Trade most of the morning was firm but sluggish, but traders quickly stepped back into the market as prices continued to try to narrow the discount of the cash market. June settled 1.02 higher at 152.37, and August was up 1.17 at 150.90.

Feeder cattle settled 37 to 102 points higher. Triple digit gains were evident in the feeder cattle futures with the August contract leading the way at one point with gains of 1.52, but did close off the high of the day. Expectations of higher placements in April seems to have lost its edge as buyers returned to the market, focused on the ability to draw additional buyer support back into the market. May settled .37 higher at 220.10 and August was up 1/02 at 217.72.

Feeder cattle receipts at the Huss Platte Valley Auction at Kearney, Nebraska totaled 2930 head. Compared to two weeks ago, steers and heifers sold 2.00 to 5.00 higher with the most advance on heavy weight feeders. A near capacity crowd was on hand and they bid readily for all offerings from start to finish. Feeder steers, medium and large 1 averaging 869 pounds traded at 212.42 per hundredweight. 823 pound heifers brought 204.71.

Lean hogs settled 122 higher to 5 points lower. Early losses were replaced by moderate to strong gains. Higher pork values in the morning report created some needed stability. June futures led the market higher, giving support to the entire complex. Only a couple of winter contracts were 5 points lower. June was up 1.22 at 83.77, and July was up .50 at 83.85.

There was slow hog market activity with light demand on Thursday. Barrows and gilts in the Iowa/Minnesota direct trade closed .11 lower at 79.41 weighted average on a carcass basis, the West was down .15 at 79.16, and the East was not reported. The Missouri direct base carcass meat price was steady to 1.00 lower from 73.00 to 74.00. Midwest hogs on a live basis were fully steady from 53.00 to 60.00.

The pork carcass cutout value was up .92 at 87.05 FOB plant. All cuts with the exception of the picnic primal were higher.

Last week Iowa barrows and gilts averaged 280.8 pounds, 0.4 pounds lighter than the previous week and 6.7 pounds smaller than 2014. Market live weights should consistently trend lower for at least another 30-45 days.

The Thursday hog slaughter was estimated by USDA at 425,000 head, 5,000 more than last week, and 53,000 more than last year.