Market News

Triple digit gains in cattle futures

A few scattered cattle sales were reported in the North by DTN at 190.00, mostly $4.00 higher than Wednesday’s trade, but 5.00 lower than a week ago. The South remained quiet on Thursday without even a bid evident. Asking prices are around 118.00 to 120.00 in the South and 192.00 in the North. The cattle slaughter was estimated by USDA at 114,000 head, 5,000 more than last week and 2,000 above last year.

Boxed beef cutout values were lower on choice and steady on select on light to moderate demand and moderate to heavy offerings. Choice beef was down 1.62 at 215.46, and select was .01 lower at 198.34.

Live cattle contracts on the Chicago Mercantile Exchange settled 105 to 222 points higher with triple digit gains in all contracts. August contracts led the complex higher with a 2.22 rally based primarily on the support in the feeder cattle market and further pressure in corn markets.

Strong gains redeveloped across the feeder cattle market with futures ending the day 160 to 240 points higher. The support through the market remained firm, but after prices hit contract lows earlier in the week, there is a lot of upward potential before resistance is seen.

There was a special value added feeder cattle sale at the Joplin, Missouri Regional Stockyards on Thursday. Receipts totaled 5,000 head. There was no price comparison and the demand was moderate to good on a moderate supply. All calves are on a wean vac-program and heifers are guaranteed open. Feeder steers medium and large 1 weighing 550 to 600 pounds brought 150.00 to 156.00 per hundredweight. 550 to 60 hundred pound heifers traded at 134.50 to 144.50

Lean hogs settled 20 to 62 points lower as strong follow through pressure developed through the lean hog complex, although futures did recover from the tripe digit losses seen earlier in the session. The underlying lack of buyer support willing to step back into the market during the downward price slide brought about even more liquidation and quickly eroded support over the last three weeks.

Barrows and gilts in the Iowa/Minnesota direct trade closed .39 higher at 82.61 weighted average on a carcass basis, the West was .37 higher at 82.51, and nationally the market was up .12 at 81.30. Missouri direct base carcass meat price closed steady from 68.00 to 74.00. Midwest hogs on a live basis were steady to as much as 4.00 higher from 49.00 to 60.00.

The pork carcass cutout value was .36 lower at 88.91 FOB plant. Ribs were down over $5.00.

Allendale Inc. estimates the all hog numbers on June 1 at 100.5 percent. Kept for breeding at 99.7 percent, and kept for marketing at 100.5 percent. The quarterly hogs and pigs report is set for release Friday afternoon at 2:00 CDT.

For the week ending June 18, barrows and gilts averaged 279.2 pounds, 2.7 pounds lighter than the previous week, and only 2 pounds smaller than 2015.

The hog slaughter was estimated at 425,000 head, 2,000 less than last week, but 6,000 greater than last year.