Market News

Slow market activity in the futures

Generally speaking it was relatively quiet in the cattle markets on Wednesday. A few bids were reported by private sources at 124.00 on a live basis in Texas, and 197.00 dressed in Nebraska. Asking prices are thought to be around 130.00 in the South, and 200.00 to 205.00 in the North. While some packers are thought to be short bought there is a considerable distance between what feedlot operators want and what buyers are willing to pay. The kill is estimated by USDA at 111,000 head, 1,000 below last week, and 6,000 smaller than 2015.

Boxed beef cutout values were firm on choice and lower on select on light to moderate demand and moderate to heavy offerings. Choice beef was up .30 at 223.57, and select was down 1.74 at 205.08.

Live cattle contracts on the Chicago Mercantile exchange closed 15 to 60 points higher in light trade volume. Boxed beef cutout values were supportive to the trade with higher prices in the midday report.

Feeder cattle ended the session 57 to 107 points higher with only the May contract lower by 52 points. The focus of trade continued to be based on the movement in the cash cattle market through the end of the week.

Feeder cattle receipts at the Ozarks Regional Stockyards at West Plains, Missouri totaled 4447 head on Tuesday. Compared to last week feeder steer calves and yearling heifers were 5.00 to 15.00 lower with spots of 20.00 lower. Feeder heifer calves and yearling steers traded 3.00 to 10.00 lower. The demand was moderate on a heavy supply. Feeder steers medium and large 1 weighing 614 pounds averaged 153.48 per hundredweight. Heifers’ averaging 614 pounds traded at 140.23.

Fat cattle receipts at the Manchester, Iowa Livestock Auction totaled 454 head. Compared to last week, beef steers and heifers were 1.50 lower, Holstein steers were weaker. High yielding prime and choice steers ranged from 128.00 to 132.25. Heifers from 128.00 to 131.00. Holstein steers brought 116.00 to 121.50.

Lean hogs settled 10 to 50 points higher. For the most part activity in the lean futures was at a near standstill. Trade was mixed for much of the session. The overall lack of direction was not surprising given the lack of movement through the entire livestock market and potential chance to just keep markets afloat over the near term. This could continue over the next couple of days as traders try to look for additional market movement around the holiday activity.

Barrows and gilts in the Iowa/Minnesota direct trade closed 1.03 lower at 73.85 weighted average on a carcass basis, the West was down 1.07 at 73.77, and nationally the market closed .87 lower at 73.44. Missouri direct base carcass meat price was steady to 1.00 lower from 64.00 to 68.00.

The pork carcass cutout value was 1.80 higher at 85.03 FOB plant. The belly primal was $6.47 higher.

The overall wholesale pork product values are expected to trend sideways heading into Memorial Day but gain significant momentum in June, moving toward the Fourth of July holiday weekend.

The hog slaughter was estimated at 431,000 head, the same as last week, but 4,000 more than a year ago.