Market News

Cattle trade very quiet

The cash cattle trade remains at a standstill with significant trade volume delayed until sometime on Friday. It is encouraging to see fully steady bids at 138.00 in the South, but some asking prices are holding firm. At 138.00, $2.00 to 4.00 higher than last week. So far no specific asking prices have been reported in the North where feedlot managers are reassessing showlists in the wake of this week’s storm. Some in the trade are estimating that cattle will be priced around 215.00 or better on a dressed basis.

The cattle kill was estimated at 111,000 head, even with last week and last year.

Boxed beef cutout values were firm on moderate demand and light to moderate offerings. Choice beef was up .46 sat 223.03, and select was .46 higher at 218.48.

Chicago Mercantile Exchange live cattle contracts settled 10 to 45 points lower with only spot February 22 higher. The pressure in feeder cattle futures and lack of lack of support in the live cattle markets caused the market to erode. Traders were looking for additional long term support through the market, but with low volume it was hard to move prices significantly one way or the other.

Feeder cattle ended the session 92 to 142 points in the red. The lack of follow support to hold the early market gains allowed for pressure to develop through the entire cattle complex. Trade volume was extremely light.

Feeder cattle receipts at the Springfield, Missouri Livestock Marketing Center totaled 2139 head on Wednesday. Compared to last week, steer calves weighing less than 450 pounds were steady, 450 to 650 pounds trended 2.00 to 6.00 lower, yearling steers traded steady to 2.00 higher. Heifers sold 5.00 to 10.00 lower. Demand and supply was moderate. Feeder steers medium and large 1 averaging 688 pounds averaged 163.53 per hundredweight. 529 pound heifers brought 160.54.

Lean hogs settled 15 to 57 points higher on light support in the nearby contracts with the spring and summer contracts holding the largest gains. The focus through the complex continued to be based on the ability to draw additional buying interest through the next several trading sessions and firmer cash market support.

Barrows and gilts in the Iowa/Minnesota direct trade are .93 higher at 62.34 weighted average on a carcass basis, the West closed .41 higher at 61.76, and nationally the market was up .46 at 61.12. Missouri direct base carcass meat price closed 2.00 higher from 50.00 to 57.00. Midwest hogs on a live basis were steady from 36.00 to 42.00.

The pork carcass cutout value FOB plant was down .71 at 76.52.

The Saturday hog kill could be 25,000 head or better. Such eagerness to make-up for lost production due to the storm earlier in the week speaks highly of excellent packer margins and general confidence in product demand.

The Thursday hog slaughter was estimated at 401,000 head, 34,000 less than last week and down 36,000 from last year.