Market News

Livestock futures close higher

A light to moderate cattle trade developed in parts of cattle country with the best test evident in Kansas and Texas. With most sales at 125.00, the Southern live trade is nearly $6.00 lower than last week. Asking prices on unsold cattle appears to be around 128.00 plus in the South, and 200.00 plus in the North. The kill totaled 113,000 head, the same as last week, but 1,000 smaller than a year ago.

Boxed beef cutout values were lower on light to moderate demand and offerings. Choice beef was down .85 at 222.72, and select was 1.82 lower at 203.26.

Chicago Mercantile Exchange live cattle contracts settled 77 to 195 points higher. The market wavered in a wide price range and volume remained rather light. The August through the December contracts saw the most support and markets traded in a narrow trading range for much of the session.

Feeder cattle settled 42 to 272 points higher and like the live cattle trade there were wide price swings as light trade volume was seen. The ability to bring buyers back to the market following the early triple digit losses seen through the morning trade created some follow through momentum that could be carried into the holiday weekend.

Feeder cattle receipts at the Springfield, Missouri Livestock Marketing Center totaled 1616 head on Wednesday. Compared to the previous week, steers sold 3.00 to 8.00 lower with heifers 6.00 to 8.00 lower, spots up to 12.00 lower. Feeder steers medium and large 1 averaging 614 pounds brought 159.06 per hundredweight. 521 pound heifers averaged 141.38.

Lean hogs settled 25 to 157 higher as strong gains quickly developed through the lean market, pushing nearby contracts back above the $80.00 price level. This gave the entire complex a sense of momentum as traders remained focused on additional buyer interest over the market.

Barrows and gilts in the Iowa/Minnesota direct trade closed .28 lower at 73.56 weighted average on a carcass basis, the West was down .37 at 73.40, and nationally the market was 1.82 lower at 72.74. Missouri direct base carcass meat price is steady from 64.00 to 68.00. Midwest hogs on a live basis are lightly tested, steady from 47.00 to 50.00.

The pork carcass cutout value was down 1.46 at 83.57 FOB plant.

For the week ending May 21, Iowa barrows and gilts averaged 289.2 pounds, .4 pounds lighter than the previous week, and 2.5 pounds heavier than 2015. The seasonal trend toward lighter weights should persist for another 30 to 45 days.

The hog slaughter was estimated at 428,000 head, 32,000 more than last week, and 18,000 greater than last year.