Market News

A few bids are reported on the cattle

A few scattered bids on the cattle were reported on a dressed basis in Nebraska from 188.00 to 190.00. Live bids were reported by private sources in Iowa at 120.00. A few asking prices have been noted in parts of the South at 127.00. It is looking like significant trade volume will be delayed until the end of the week.

Wednesday’s cattle slaughter was estimated at 109,000 head, 2,000 less than last week, but 7,000 more than last year.

Boxed beef cutout values were sharply lower on light demand and heavy offerings. Choice beef 3.83 lower at 205.94, select was down 2.94 at 197.02.

Chicago Mercantile Exchange live cattle contracts settled 107 points higher to 65 lower, with June up the most. The lack of follow through support through the market, limited the overall buyer support across the complex. . Trade volume was extremely light.

Feeder cattle ended the session 152 higher to 105 points lower with the front months higher and the deferred months in the red. The lack of support across the market continued to concentrate on the inability to draw buyer support into the cattle futures as well as well as redevelop cash cattle or beef value support back into the market going into the summer months.

Feeder cattle receipts at the Ozarks regional Stockyards at West Plains, MO totaled 2594 head on Tuesday. Compared to last week, feeder steer and heifer calves under 550 pounds traded steady to 6.00 higher while heavier weight calves traded steady to 5.00 lower. With too few yearlings to compare, the undertone for yearling steers was steady to firm while yearling heifers were lightly tested. Demand was very good especially on several packages of high quality replacement heifers. Feeder steers medium and large 1 averaging 520 pounds traded at 174.92 per hundredweight. 601 pound replacement heifers traded at 162.24.

Lean hogs settled 110 points lower to 17 higher as firm pressure developed as traders continued to focus on short term liquidation in the nearby contracts. June futures led the complex lower, and only the far deferred months were higher.

Barrows and gilts in the Iowa/Minnesota direct trade closed 1.26 higher at 72.86 weighted average on a carcass basis, the West was up 1.29 at 72.77, and nationally the market was 1.05 higher at 71.05.The Missouri direct base carcass meat price is steady to 1.00 higher from 59.00 to 65.00. Midwest hogs on a live basis are steady in a range of 41.00 to 55.00.

The pork carcass cutout value was down .11 at 82.46 FOB plant. Hams, loins and butts were higher, bellies, picnics and ribs closed lower.

It sounds like this week’s hog slaughter could end up being larger rather than smaller thanks in part to Smithfield’s plans to run its Tar Heel, North Carolina plant as many as six days, as opposed to only four last week. If the total kill approaches 2.22 million head, it would exceed the prior week by 4% and the previous year by more than 5%.

The hog slaughter on Wednesday was estimated by USDA at 433,000 head, the same as last week, but 16,000 more than last year.