Market News

Cattle futures start the week higher

Cattle country was typically quiet on Monday afternoon following the distribution of this week’s showlists. The pre-holiday offering appears to be generally smaller this week, especially in the South. The best guess is showlists will start out being priced around 118.00 to 120.00 in the South and 190.00 to 192.00 in the North. The kill totaled 113,000 head, even with both last week and last year.

Boxed beef cutout values were sharply lower on choice and weak on select on light to moderate demand and moderate offerings. Choice beef was down 3.26 at 210.50 and select was .44 lower at 197.39.

Chicago Mercantile Exchange live cattle contracts settled 82 to 127 points higher. Futures held strong gains based on short covering activity following Friday’s losses. The firm support in the grain market helped to draw buyers back to the complex.

Feeder cattle settled mostly 55 to 122 points higher with the exception of some 2017 contracts. Gains stepped into the complex following the sharp losses from last week. Although some support slowed in the deferred contracts nearby contracts saw triple digit gains.

Feeder cattle receipts at the Joplin, Missouri Regional Stockyards on Monday totaled 6,000 head. Compared to last week’s sale, steers calves were steady to 3.00 higher, yearling steers 3.00 to 7.00 higher, heifer calves and yearling heifers 2.00 to 4.00 higher. Demand was moderate to good. Steers medium and large 1 weighing 550 to 600 pounds brought 140.00 to 155.00 per hundredweight. Heifers weighing 550 to 600 pounds traded at 135.00 to 140.00.

Lean hogs settled 147 points lower to 65 higher. Moderate to strong pressure was evident through the complex. The fact prices continued to push lower was no significant surprise given the lack of byer support willing to step into the market. July and December were all lower, with 2017 contacts higher.

Barrows and gilts in the Iowa/Minnesota direct trade closed .77 lower at 81.25 weighted average on a carcass basis, the West was down .73 at 81.15, and nationally the market was down .40 at 80.60. Missouri direct base carcass meat price was steady to 1.00 higher from 68.00 to 75.00. Midwest hogs on a live basis closed steady from 49.00 to 60.00.

The pork carcass cutout value was .27 lower at 89.00 FOB plant. All cuts were lower except the bellies, up 2.00.

The June 1 hogs and pigs report exceeded pre-report expectation in all three major categories. Furthermore, the spring pig crop turned out to be a good deal larger than expected.

Nearby lean hog futures are looking toppy, according to DTN analysts. While cash hog prices could continue to work higher over the next 30 to 40 days, board bulls may find it increasingly difficult to find new firewood to stoke greater premiums.

The Monday hog slaughter was estimated at 425,000 head, 6,000 greater than last week, and 1,000 more than a year ago.