Market News

Cattle futures closed sharply lower

Feedlot country was quiet on Friday with just a few scattered sales reported in parts of Western Nebraska and Colorado at 132.50 live. At this point it looks like final trade volume totals will be on the short side, possibly forcing packers to start out after the holiday fairly close to the knife. The weekly cattle slaughter was estimated at 613,000 head, 11,000 above the previous week, and 27,000 higher than 2016.

Boxed beef cutout values were weak on light to moderate demand and offerings. Choice beef was 245.60, down .51, and select down .53 at 218.45.

Chicago Mercantile Exchange live cattle contracts settled 1.22 to 2.85 lower. The market had seen moderate to strong buyer support earlier in the session and June had seen triple digit gains earlier. The market took a dive after release of the monthly cattle on feed report that turned out to be generally negative in terms of larger than expected April placement activity, up 11%. Total on feed numbers were up 2% on May 1, and marketing’s in April 3% higher.

Feeder cattle also settled sharply lower due to the results of the Cattle on feed report from 3.52 to 4.30 in the red.

Feeder cattle receipts at Missouri auctions this week totaled 31,279 head, feeder steers and heifers sold steady to 5.00 higher. The feeder supply was moderate. Several reporters noted some loads of yearlings showing up, which is a few weeks earlier than what is typical. Overall the offerings at auctions have been strong all spring and the normal lull between the grass calf market and summer yearling run has not occurred. Feeder steers medium and large 1 averaging 621 pounds traded at 166.17 per hundredweight. Heifers averaging 622 pounds brought 146.76.

Lean hogs settled 1.32 higher to .22 lower with all 2017 contracts in the black. Following the lackluster interest seen through the morning buyer support moved back into the complex as cash support developed during the morning reports. This moved all nearby contracts higher and sparked increased underlying commercial support through the complex.

Barrows and gilts in the Iowa/Minnesota direct trade closed .99 lower at 71.32 weighted average on a carcass basis, the west was down 1.12 at 71.19, and nationally the market was .75 lower at 71.01. Missouri direct base carcass meat report was steady to 1.00 higher from 64.00 to 66.00. Midwest hogs on a live basis were 1.00 higher at 49.00.

The pork carcass cutout value was down .02 at 90.28 FOB plant.

Feeder pig receipts nationally this week totaled 94,571 head. Compared to last week, early weaned pigs were steady. All feeder pigs traded steady to 1.00 per head higher. The demand was moderate for moderate offerings. Receipts included 50% formulated pigs. Early weaned pigs on a 10 to 12 pound basis traded from 18.00 to 34.50. 40 pound basis pigs from 48.00 to 58.00. Prices quoted are on a per head basis delivered to the buyer’s farm. Prices include freight and fees on a farm to farm basis.

The weekly hog kill was estimated at 2.192,000 head, 57,000 less than last week, and 8,000 more than last year.

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