Market News

Cattle futures contracts settle limit higher

USDA Mandatory reported negotiated cash cattle trade was active on very good demand in the Southern Plains. Live sales in the Texas panhandle ranged from 135.00 to 137.00. In Kansas sales ranged from 136.00 to 138.00, prices appear to be about $4.00 to 7.00 higher than last week. Trade was moderate on very good demand in the Northern Plains with live sales in Nebraska from 138.00 to 140.00, dressed sales from 215.00 t0 220.00, that would be $6.00 to 11.00 higher than last week’s weighted average basis Nebraska. The kill totaled 117,000 head 1,000 more than last week and 4,000 greater than 2016.

Boxed beef cutout values were steady on choice, and higher on select on moderate to fairly good demand and light to moderate offerings. Choice boxed beef was down .03 at 219.15, and select 206.68, up .96.

Live cattle contracts on the Chicago Mercantile Exchange settled 2.95 to 3.57 higher with limit gains quickly exploding into the market. The April contract expired at noon creating limitless trade in the front month futures allowing contracts to post gains at one point of 4.67. Traders are looking for strong market support through the end of the month.

Feeder cattle contracts settled 1.00 to 4.50 higher with the limit gains in all but the front month April contracts. The aggressive move higher comes following the lackluster early market interest seen on Thursday which gave way to aggressive cash market trade in the live cattle markets. The close at these price levels will expand trading limits in the feeder markets and would add to the already volatile cattle markets through the end of the month.

Sioux Falls Regional Livestock at Worthing South Dakota had receipts of 824 sheep. Compared to last Wednesday. Slaughter lambs were very lightly tested with sharply higher undertones evident Feeder lambs were lightly tested last week with higher undertones noted. Demand was very good for slaughter and feeder lambs. Slaughter lambs wooled and shorn choice and prime weighing 155 pounds brought 193.52 per hundredweight. Feeder lambs weighing 54 pounds brought 292.74 per hundredweight.

Lean hogs settled .20 to 2.27 higher with strong triple digit gains in the May through October contracts. The June contract remained the focus of trade and gaining additional buyer support through the end of the week, this drew additional trade activity through the rest of the complex.

Barrows and gilts in the Iowa/Minnesota direct trade closed 1.18 higher at 56.01 weighted average on a carcass basis, the West was up .90 at 55.82, and nationally the hog market was 1.01 higher at 55.48. Missouri direct base carcass meat price was steady from 47.00 to 49.00. Illinois direct trade hogs on a live basis were weak from 32.00 to 42.00, sows steady from 33.00 to 47.00.

The pork carcass cutout value was .18 higher at 73.65 FOB plant.

For the week ending April 22, Iowa barrows and gilts averaged 284.9 pounds, 1.1 pounds heavier than the previous week, and .9 pounds heavier than 2016.

The hog slaughter was estimated at 442,000 head, 1,000 less than last week, and up 41,000 from last year.