Market News

Storm recovery continues

There was very little action in  feedlot country other than the sound of snow plows and blowers as producers and cattle continue to recover from the storm. Buyers and sellers may not get around to trading cattle until Friday. Some showlists in the South have been priced around 142.00. The kill totaled 98,000 head, 11,000 less than last week, and 1,000 below last year. Tuesday’s slaughter was revised down to 77,000 head.

Boxed beef cutout values were steady to firm on Wednesday on light to moderate demand and offerings. Choice beef was up .10 at 227.57, and select was at 218.02.

Chicago Mercantile Exchange live cattle contracts settled 26 to 112 points higher, but well off the day’s highs. Apparently the stronger buyer interest in the morning was unable to hold through the end of the session, and erode as they did earlier in the week as they moved closer to the closing bell.

Feeder cattle contracts settled 10 to 35 points higher, but like the live cattle contract were unable to hold the strong triple digit gains into the close of trade.

Feeder cattle receipts at the Ozark’s Regional Stockyards at West Plains. Missouri totaled 3297 head. Compared to last week, feeder steers under 600 pounds traded 5.00 to 10.00 lower. Steer calves over 600 pounds traded steady to 4.00 lower. Yearling steers were 2.00 to 4.00 lower. Feeder heifers traded 3.00 to 6.00 lower. Demand was moderate on a moderate supply. Feeder steers medium and large 1 averaging 567 pounds brought 195.70 per hundredweight. 567 pound heifer’s averaged 154/74.

Lean hogs finished 25 to 72 points higher as the light to moderate gains redeveloped through the complex as traders focused on strong morning rallies through the cattle complex. The support in the hog trade counters the aggressive triple digit losses seen on Tuesday, but still does not overshadow the weaker trend seen earlier in the week.

Direct trade hog reports were delayed due to packer submission problems. The morning reports were not available due to confidentiality. Missouri direct base carcass meat price closed steady from 48.00 to 55.00. Midwest hogs on a live basis were steady to higher from 36.00 to 40.50.  At least two markets were closed due to severe weather.

The pork carcass cutout value was down 1.14 in the afternoon report at 77.23 FOB plant.

Hog slaughter was reduced again on Wednesday due to the storms in major producing areas, but the reduction was not as drastic as Tuesday. Wednesday’s kill totaled 395,000 head, down 43,000 from last week, and 34,000 less than last year.

Ham prices maintained a higher course through much of January but hit a little resistance as the month drew to a close. This is unlikely to last as buyers keep loading up ahead of Easter. Bone-in 20# to 23# hams could quickly make their way into the low-to-mid $70s in the coming weeks.