Market News

Midday cash livestock markets

It is a typical Tuesday in cattle country with bids and asking prices not established. Feedlot managers could start out by pricing cattle around 138.00 in the South, and 215.00 in the North. Given the official trade volume totals generated last week, cattle buyers have stepped into the new week extremely close to the knife. Some believe packers will be forced to get serious about procurement chores as early as Wednesday.

Boxed beef cutout values are lower in the morning report, with choice 218.76 down .05, and select 1.15 lower at 215.07.

Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 6200 head. Compared to last week, feeder steers and heifers were 2.00 to 5.00 lower. The demand for feeder cattle was moderate to good despite sharply lower cattle futures for the past two trading sessions. Steer and heifer calves were steady to 2.00 higher. The demand for stocker cattle was very good as many are looking ahead to spring and green pastures. Feeder steers medium and large 1 averaging 722 pounds traded at 156.11 per hundredweight. 719 pound heifers brought 141.25.

The Rock Valley, Iowa Hay Auction had 33 loads. Hay sold mostly steady with light buyer interest. Good quality alfalfa, large squares and rounds brought 115.00 to 125.00 per ton. Large rounds of grass traded at 112.50. 12 loads of cornstalks in large rounds brought 50.00 to 57.00 per ton.

Barrows and gilts in the three major direct trade areas are not reported due to confidentiality. Nationally the direct trade is .25 higher at 61.58 weighted average on a carcass basis. Missouri direct base carcass meat price is steady from 51.00 to 57.00. Midwest hogs on a live basis are fully steady from 37.00 to 48.00.

The pork carcass cutout value is up 1.15 at 78.11 FOB plant. Loins and ribs were significantly higher.

Given a rally of more than $20 in just three weeks, the belly market is probably too hot not to cool off. There should be at least a modest break in the market sometime in February.

This week’s hog kill should be somewhat larger than last week as producers push a bit more to catch up from weather-delayed marketing’s. Specifically, the weekly slaughter is expected to be close to 2.23 million head, roughly 1% to 2% larger than 2015.