Market News

Cattle futures close limit lower

Cattle country is at a standstill on Monday as expected, following the collection of the new show lists. The new offering appears to be larger in Kansas, Texas and Colorado, but it looks like Nebraska is offering fewer ready steers and heifers. Asking prices are poorly defined at this time but some feedlot managers are expected to price cattle around 139.00 plus in the South and 215.00 in the North. The cattle slaughter was estimated at 109,000 head, 2,000 below last week, and a year ago.

Boxed beef cutout values were steady on select and lower on choice on light to moderate demand and moderate offerings. Choice beef was .89 lower at 219.71, and select was .07 higher at 217.24.

Chicago Mercantile Exchange live cattle contracts settled the 3.00 limit lower on Monday. The lack of support through the complex was not surprising given the lack of buyer support seen late last week and market volatility over the last couple of months. The lack of fundamental direction in the market continues to allow for technical gyrations in this wide range, and further distancing price shifts in futures trade from moves in the cash market.

Feeder cattle settled 450 points lower across the board< The aggressive triple-digit losses which started to develop Friday, quickly stepped back into the market Monday morning with feeder cattle futures at or near limit losses through the morning. The closing limit losses will result in expanded trading limits on Tuesday.

Feeder cattle receipts at the Joplin, Missouri Regional Stockyards Monday totaled 6693 head. Compared to last week, steer and heifer calves were selling firm to 2.00 higher and yearlings were not well tested early. Demand is good on a moderate supply. Feeder steers medium and large 1 weighing 500 to 600 pounds averaged 180.00 to 205.00 per hundredweight. 6 to 7 weight heifers’ brought 138.00 to 151.00.

Lean hogs settled 20 to 60 points lower. The aggressive pressure in cattle and outside markets allowed for additional softness to develop in lean hog futures. Although the overall tone of the hog complex has remained surprisingly resilient through early week trade with Monday activity and February futures ending .22 higher. Other spring and summer contracts were lower, but compared to the rest of the livestock markets this softness was considered to be insignificant at this point.

Barrows and gilts in the Iowa/Minnesota direct trade closed .68 higher at 63.08 weighted average on a carcass basis, the West was up .89 at 63.11, and nationally the market was down, 07 at 61.38. Missouri direct base carcass meat price was steady to 1.00 higher from 51.00 to 57.00. Midwest hogs on a live basis were steady to 3.00 higher from 37.00 to 48.00.

The carcass cutout value was down .61 at 76.96.

With spot February lean hog futures set to expire on Friday and soon-to-be-spot April already $6.00 above the cash index, buying interest on nearby lean contracts could start to slow.

The hog slaughter was estimated at 371,000 head, 68,000 head less than last week, and down 39,000 from last year.

 

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