Boxed beef cutout values are .79 higher on the choice at 186.47 and up 1.19 on the select at 181.30. 

Feeder cattle receipts at the Ozarks Regional Stockyards at West Plains, Missouri totaled 5421 head on Tuesday. Compared to last week’s sale steers sold steady to 8.00 higher with the advance on the 600 to 750 pound offerings. Heifers were also steady to 8.00 higher with weights over 750 pounds steady to 1.00 lower.  However some soft fleshy or plainer calves weighing 450 to 600 pounds were weak to 3.00 lower. Feeder steers medium and large 1 averaging 630 pounds traded at 171.16 per hundredweight. 621 pound heifers averaged 148.49.

Barrows and gilts in the Iowa/Minnesota direct trade opened 2.77 lower, the West is down 2.99 with both at 83.71 weighted averages on a carcass basis, and the East is .88 lower at 79.74. Missouri direct base carcass meat price is steady from 80.00 to 81.00. Terminal hogs are fully steady from 57.50 to 60.00 live.

 Trade sources suggest that the ham market is slowly beginning to firm as Easter orders are being placed. Assuming normal seasonal demand in this regard, the ham primal is expected to advance $15-20 over the next 30-45 days.

Corn was modestly lower on technical selling and profit taking. Corn was also looking at a lack of fresh supportive news while getting ready for the upcoming report from the Ag Department. Losses were limited by good domestic demand, the outside markets, and concerns about South America’s crops. Ethanol futures were modestly higher. Mexico’s Ag Ministry, via Dow Jones Newswires, expects southern and southeastern Mexico’s corn crop to be up sharply on the year thanks to improved technology.

The wheat complex was modestly lower on profit taking and technical selling. There was no fresh news for wheat either as the complex also starts squaring up for Thursday’s USDA numbers. Still, Japan is in the market for U.S. wheat (33,897 tons hard red winter and 22,810 tons western white along with 41,845 tons of Canadian western red spring) and the trade has continued concerns about Eastern European weather with Dow Jones Newswires reporting thick ice in some Ukrainian harbors along with another wave of extremely cold weather in areas with limited snow cover. European wheat was lower on profit taking and expectations for a good sized European crop, even with some winterkill damage.

Boxed beef cutout values were higher on light demand and offerings. Choice boxed beef was up 1.02 at 185.68, and select was up 1.04 at 180.11.

Live cattle contracts settled 60 to 160 points higher on the Chicago Mercantile Exchange (CME) on Tuesday. Triple digit gains were seen in the front months on the increased boxed beef values.  Stronger outside support and a lower U.S. dollar value also benefited the live cattle futures. February settled 1.60 higher at 125.35, and April was up 1.07 at 128.57.

Feeder cattle ended the session 10 to 87 points higher on support from the live pit and a slightly softer corn market. March settled .87 higher at 155.00, and April was up .55 at 157.10.

Lean hog contracts settled 62 higher to 95 points lower on the CME during Tuesday’s session. A lack of support in the cash market and additional trade interest in rolling out of the front month into the April and June futures were the main market features. The spot month was down the most due to lower pork cutout values. Demand for pork continues to be lower than expected.  February hogs settled .95 lower at 86.17, and April was up .55 at 89.10.

Feeder cattle receipts at the Joplin, Missouri Regional Stockyards on Monday totaled 4976 head. Compared to last week, steer calves were steady; heifer calves weighing less than 600 pounds were 3.00 to 6.00 lower, following last week’s sharply higher trade. Yearlings trended steady with the exception of seven weight steers steady to 1.00 higher. Demand was moderate to good on a moderate supply. Feeder steers medium and large 1 weighing 718 pounds averaged 155.39 per hundredweight. Heifers with an average weight of 670 pounds traded at 145.71.

There was slow to moderate market activity with light demand for hogs on Tuesday. The Iowa/Minnesota direct trade closed 1.06 higher at 86.47 on a carcass basis, the West was up 1.33 at 86.72, and the East was down .56 at 80.62. Missouri direct base carcass meat price closed steady from 80.00 to 81.00. Terminal hogs were steady with an instance of 1.00 lower from 57.50 to 61.00.

Pork trading was slow to moderate with light to moderate demand and offerings. Pork carcass cutout value was up .43 at 85.18.

Hog slaughter was estimated at 421,000 head, 4,000 more than last week, and 7,000 greater than a year ago. Packer margins remain poor and some processors may wait for an improvement in product prices before increasing their chain speed. Cash prices should remain weak through the end of the week, with some improvement in bids next week as supplies may be tighter than previously expected.

Choice boxed beef is up .99 at 185.65, and select is up 1.11 at 180.16.

Feeder cattle receipts at the Joplin, Missouri Regional Stockyards on Monday totaled 4976 head. Compared to last week, steer calves were steady; heifer calves weighing less than 600 pounds were 3.00 to 6.00 lower, following last week’s sharply higher trade. Yearlings trended steady with the exception of seven weight steers steady to 1.00 higher. Demand was moderate to good on a moderate supply. Feeder steers medium and large 1 weighing 718 pounds averaged 155.39 per hundredweight. Heifers with an average of 670 pounds traded at 145.71.

Iowa/Minnesota direct trade barrows and gilts are 1.94 lower at 83.47 on a carcass basis, the West is down 1.76 at 83.63, and the East is .68 lower at 80.50. Missouri direct base carcass meat price is steady 80.00 to 81.00. Terminal hog markets are steady to an instance of 1.00 lower from 57.50 to 60.00.

The pork carcass value has started the week on the defensive, calculating moderate lower on Monday thanks to softening demand for ribs and hams.

The average projection for 2011/12 corn ending stocks, via Dow Jones Newswires, is 797 million bushels, compared to the 846 million in December’s report thanks to good export demand. Soybeans are pegged at 269 million bushels, compared to 275 million a month ago, and wheat is seen at 868 million bushels, compared to 868 million last month. A year ago at this time, 2010/11 corn ending stocks were 1.128 billion bushels, soybeans totaled 215 million, and wheat ending stocks were 862 million bushels.

Also on Thursday, USDA will be updating the global balance sheet with South American production numbers hotly anticipated following extremely warm and dry weather during critical growth periods. Argentina’s corn crop is estimated at 22.5 million tons and soybeans are placed at 48.5 million tons, while Brazil’s corn is pegged at 59.8 million tons and soybeans are seen at 71.7 million tons. Last month, USDA put Argentina’s corn crop at 26.0 million tons and soybeans at 50.5 million, while Brazil’s corn crop was estimated at 61.0 million and soybeans were projected at 74.0 million tons.

The numbers are out Thursday, February 9 at 7:30 AM Central.

Corn was mixed in consolidation trade. There’s no fresh news, the outside markets were bearish, and commercial demand has slowed down. South America’s corn crop has been damaged but most of that seems to be factored in. Ethanol was firm. Brazilian crop consultancy Celeres, via Dow Jones Newswires, projects that nation’s summer corn crop at 35.45 million tons, down nearly 4% from its January estimate but still up more than 7% from the previous year thanks to increased acreage. Celeres adds 8% of the summer corn crop is harvested and the firm estimates winter corn production at 25.14 million tons.

The wheat complex was mostly higher with Chicago and Kansas City up short covering and commercial buying. There are the continued concerns about winterkill in Eastern Europe and Western Europe also had damaging cold over the weekend. Also, Ukraine is set to slow down exports by halting railroad exports of grain. European wheat made a new eight month high thanks to weather worries and the lower Euro.

Boxed beef cutout values were higher on moderate demand and light to moderate offerings. Choice beef was up 1.54 at 184.66, and select was up .99 at 179.07.

Chicago Mercantile Exchange live cattle contracts settled 37 higher to 15 lower. The front months held early gains following light to moderate boxed beef market support in the noon report. The trade remained generally sluggish with the far deferred contracts in the red while the nearby’s showed moderate gains. February settled .12 higher at 123.75, and April was up .10 at 127.50.

Feeder cattle settled 10 to 50 points lower despite the ability for the live cattle contracts to hold slight gains through much of the session. Traders remain concerned about the longer term trend in the in the cash cattle markets as well as a lack of renewed support as the outlook of lower overall cattle numbers and potentially tighter feeder supplies fade into the background.  March settled .32 lower at 154.12, and April was down .47 at 156.55.

Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 6200 head. Compared to last week feeder steers and heifers at midsession were steady. Steer calves traded 4.00 to 8.00 higher; heifer calves were steady to 2.00 higher. Demand was moderate to good. Feeder steers medium and large 1 weighing 500 to 550 pounds traded from 184.00 to 196.50. 550 to 600 pound heifers brought 150.50 to 163.50.

Lean hogs settled 37 higher to 40 lower with only the summer month contracts in the black. The tone of the market firmed through much of the complex with the front month February contract lagging behind the remainder of the market. Liquidation developed in the front months with little direction coming from the cash or wholesale markets. February settled .40 lower at 87.12, and April was down .37 at 88.55.

There was slow market activity in the hogs with light demand on Monday. Barrows and gilts in the Iowa/Minnesota direct trade closed .62 lower and the West was down .50 with both at 85.43, weighted average on a carcass basis. The Eastern markets were 1.15 lower at 91.18. Missouri direct base carcass meat price closed steady from 80.00 to 81.00. Terminal barrows and gilts were steady to 1.00 higher from 57.50 to 61.00.

Pork trading was slow with mostly light demand and light to moderate offerings. Pork carcass cutout value was down .35 at 84.75.

Monday’s hog kill was estimated at 419,000 head, 19,000 more than last week, and 5,000 greater than a year ago. Cash hog markets have yet to show a clear seasonal surge in demand. Some production areas in the Midwest have had problems with getting hogs to market due to the heavy snow over the weekend. The cash market is expected to be weak to lower through midweek.

Boxed beef cutout values are higher in the morning report. Choice beef is up .90 at 184.02, and select is .46 higher at 178.54.

Feeder cattle receipts at the Oklahoma National Stockyards on Monday are estimated at 6200 head. Feeder steers and heifers opened steady. Steer and heifer calves are steady to 2.00 higher. The early demand was described as moderate. Feeder steers, medium and large 1 weighing 500 to 525 pounds brought 184.00 to 189.50. 500 to 550 pound heifers traded from 151.00 to 171.50.

Barrows and gilts in the Iowa/Minnesota and Western direct trades are not reported due to confidentiality. Nationally barrows and gilts on a carcass basis are 2.39 lower at 81.88, and the East is down 1.41 at 80.92. The Missouri direct base carcass meat price is steady from 80.00 to 81.00. Terminal hogs are lightly tested and are .50 to 1.00 higher from 57.50 to 61.00.

While pork carcass value appreciated more than $1.50 last week, it remained inadequate to pull packers out of red ink. The Iowa base price last week averaged 101.5% of the pork cutout. A carcass hog price at 92% of cutout is the five-year average.