Market News

Limit gains in cattle futures

Cattle country remained very quiet on Tuesday afternoon with bids and asking prices poorly defined. Feedlot psychology seems to be cautiously improving in the face of sharply higher cattle futures and hints of rebounding beef cutouts. Needless to say a single day of recovery on paper means little given the price market crash of the last thirty days. Both sides will be watching the situation closely over the next few days for signs of a meaningful shift in price trends. The kill totaled 114,000 head, 1,000 more than last week, but 1,000 less than 2014.

Boxed beef cutout values are steady on moderate to heavy demand and offerings. Choice was up .20 at 204.17, and select was .18 lower at 198.87.

Live cattle contracts on the Chicago Mercantile Exchange settled 240 to 300 points higher. Cattle futures started the day on either side of steady but turned into aggressively higher buyer support. The focus was on higher beef values as well as the potential for prices to continue to surge higher. October was up 3.00 at 125.12, and December settled at 133.22 also up 3.00.

Feeder cattle settled 440 to 450 points higher with all contracts except front month October up the limit. Firming support in beef values along with the aggressive gains in live cattle futures were the market movers. October settled 4.40 higher at 182.52, and November was up 4.50 at 178.02.

Feeder cattle receipts at the Joplin, Missouri Regional Stockyards totaled 3300 head on Monday. Compared to last week, feeder steers were 5.00 to 25.00 lower and feeder heifers trended 5.00 to 15.00 lower. The demand for feeder cattle was light to moderate on a moderate supply. Feeder steers medium and large 1 averaging 566 pounds averaged 182.11 per hundredweight. 563 pound heifers brought 164.00.

Lean hogs settled 2 to 200 points higher. Firm gains held through the trade with December through February holding triple digit gains. The support through the live cattle market helped to draw some spillover support to the lean hog market, although traders remain cautiously optimistic additional gains will develop as the week continues. October was up .60 at 73.60, and December was 2.00 higher at 66.72.

Barrows and gilts in the Iowa/Minnesota direct trade closed .46 higher at 71.79 weighted average on a carcass basis, the West was up .40 at 71.67 and the national report was 1.06 higher at 70.89. Missouri direct base carcass meat price was steady at 64. Midwest hogs on a live basis closed steady to 1.00 higher from 45.00 to 60.00.

The pork carcass cutout value was down .14 at 87.03 FOB plant.

Signs of strong pork demand and cheapening feed costs are no doubt stoking the potential of significant herd expansion over the next year.

The Tuesday hog slaughter was estimated at 433,000 head, 5,000 more than last week and last year.