Market News

Slow pre-holiday livestock trade

Cattle country was quiet with business done for the week, although it is possible there may be a little more cleanup trade in Nebraska. The kill totaled 109,000 head, 2,000 below last week, and 5,000 smaller than last year.

Boxed beef cutout values were lower on light demand and light to moderate offerings. Choice beef was down 1.97 at 260.25, and select was 1.70 lower at 247.62.

Chicago Mercantile Exchange live cattle contracts settled 40 points higher to 25 lower. Mixed trade continued through the closing bell following the release of the cattle on feed report which failed to draw much attention to the market on Friday. Traders were in holiday mode and seemed willing to let things stand where they were without rocking the boat unit next week when more activity is seen in the market. June settled .25 lower at 152.12, and August was .20 lower at 150.70.

Feeder cattle ended the session 10 to 127 points higher. Gains developed in the feeder complex, but the support that would have been expected since the April cattle on feed report was far off the average pre-report estimates and also below the range seen through the market. Placements into feedlots were down 5%. August settled 1.27 higher at 219.00, and September was up 1.17 at 218.00.

Feeder cattle receipts at Missouri auctions this week totaled 27,563 head. Compared to last week, feeders sold steady to 5.00 higher. The supply was moderate with 450 to 650 pound calves making up a large percentage of the offerings. Several barns have annual yearling sales scheduled in the next few weeks which always consist of many load lots of high quality yearlings. The demand for feeder cattle was good. Grass is green and pastures are back to growing with the surplus of moisture available. Feeder steers medium and large 1 averaging 626 pounds at 259.59. Heifers averaging 622 pounds brought 229.39.

Lean hogs settled 35 points higher to 35 lower. Trade activity in the hogs seemed to coast into the holiday weekend with very little activity developing in the complex despite strong losses in the cutout values. All summer contracts were lower with June down .05 at 83.72, and July was .12 lower at 83.72.

Barrows and gilts in the Iowa/Minnesota direct trade closed .68 lower at 78.72 weighted average on a carcass basis, the West was down .97 at 78.17, and nationally the market was 1.03 lower at 77.18.

Pork carcass cutout value was down 1.47 at 85.58 FOB plant.

At this time, it sounds like the Saturday hog kill following Memorial Day will be relatively modest with no great effort by processors to make-up for lost time. Perhaps that’s a sign packers see live supplies really tightening over the next 30 days.

The weekly hog kill was estimated at 2,147,000 head, 19,000 more than the previous week, and 193,000 greater than last year.