Market News

Cash cattle trade is slow to develop

The cash cattle market was relatively quiet on Thursday afternoon with reports of a few scattered sales negotiated with terms of delayed delivery in mid-April, but not too many deals were heard of specifically tied to the spot market, according to DTN. A few cattle were marked in Texas at 128.00 in that regard, $2.00 lower than last week. Private sources report bids of 126.00 to 128.00 live and 208.00 dressed. The kill was estimated at 111,000 head, 4,000 below last week, but 3,000 more than last year.

Boxed beef cutout values were lower to sharply lower on light to moderate demand and moderate offerings. Choice beef 215.21, down 1.71, select 208.05, down 2.21.

Live cattle contracts on the Chicago Mercantile Exchange settled .35 to 1.35 lower. Trade activity was light as traders appeared to be squaring positions at the end of the month. Pressure in the feeder cattle trade and uncertainty in the cash cattle market along with a lack of support in the beef trade pressured the live issues.

Feeder cattle futures settled .62 to 2.00 lower as sharp losses developed with the biggest losses in the deferred contracts. The market pulled back from previous gains in the complex and caused a minor correction through the summer and fall contracts. Light trade was seen in all markets.

Huss Platte Valley Auction in Nebraska had 2715 cattle on Wednesday. Compared to last week, steers and heifers sold steady. The demand was good from a moderate size crowd of buyers. Internet buying was active. There was a nice rain in the local trade area on Tuesday evening and Wednesday. Feeder steers medium and large 1 averaging 634 pounds traded at 156.92 per hundredweight. 622 pound heifers averaged 141.36.

Lean hogs settled .25 to 1.50 higher as strong buyer support quickly moved back into the lean hog market as traders anticipated the hogs and pigs report released after the close of trade. This pushed May through August contracts firmly higher as traders remained focused on aggressive market activity and the potential to turn around the previous weakness seen in the complex over the last several weeks.

Barrows and gilts in the Iowa/Minnesota direct trade closed .93 lower at 61.73 weighted average on a carcass basis, the West 61.75, down .87, and nationally 61.92, down .75. Missouri direct base carcass meat price closed steady from 55.00 to 58.00. Illinois direct hogs on a live basis 1.00 lower from 38.00 to 47.00. Sows in Illinois were steady from 32.00 to 45.00.

The pork carcass cutout value was down 1.04 at 75.18 FOB plant. All cuts were lower.

For the week ending March 25, Iowa barrows and gilts averaged 282.4 pounds, .8 pounds heavier than the previous week and 1.1 pounds lighter than 2016. Seasonally, weights could trend higher for another 30 days before turning lower from late spring to midsummer.

Thursday hog slaughter was estimated at 437,000 head, 4,000 less than last week, and the same as last year.