Market News

Cattle and hog futures end the day higher

Feedlot business was at a complete standstill on Tuesday afternoon with even token bids hard to find. Some showlists are priced around 148.00 in the South and 238.00 plus in the North. Significant trade volume will probably be delayed until Thursday or Friday. The cattle kill was estimated by USDA at 116,000 head 2,000 below last week and 6,000 short of last year.

Boxed beef cutout values were higher on moderate to fairly good demand and light offerings. Choice beef was 2.15 higher at 231.21, and select was up 1.55 at 219.60.

Live cattle contracts on the Chicago Mercantile Exchange settled 25 to 82 points higher as firming support developed through the complex with buyers concentrating on summer contracts and the expectation of stronger beef demand. The aggressive gains in in the morning boxed beef values helped to sustain the initial buyer activity through the entire cattle complex. April settled .25 higher at 143.70, and June was up .42 at 134.97,

Feeder cattle ended the session 25 to 92 points higher as buyers returned to the complex following the building support in nearby and deferred live cattle futures. May settled .25 higher at 178.35, and August was up .37 at 182.27.

Feeder cattle receipts at the Joplin, Missouri Regional Stockyards on Monday totaled 4663 head. Compared to last week, steer and heifer calves traded unevenly steady, yearlings were steady to 2.00 higher. The demand was good on a moderate supply. There was a high percentage of fleshy new crop calves along with a good offering of yearlings in the mix. Feeder steers, medium and large 1 averaging 524 pounds averaged 208.58 per hundredweight. 527 pound heifers traded at an average of 196.42.

Lean hogs settled 22 to 90 points higher. Aggressive losses seen early on Tuesday seemed to be carried over from active early week liquidation that developed on Monday. But seller’s interest quickly faded, allowing moderate to strong buyer support to flood the market by midday. May settled .22 higher at 121.02, and June was .90 higher at 123.25.

Barrows and gilts in the Iowa/Minnesota direct trade closed .10 higher at 115.83 on a carcass basis, the West was down .28 at 115.13, and the East was not reported due to confidentiality. Missouri direct base carcass meat price was 1.00 to 3.00 lower from 105.00 to 107.00. Barrows and gilts at Midwest markets were steady to 2.00 lower from 79.50 to 94.00.

The pork carcass value FOB plant closed 2.33 lower at 117.09. Bellies were over 10.00 lower.

As pork processors pull into the last half of April they should have fewer contracts to draw upon for slaughter needs. Such a reality will force hog buyers to become more aggressive in terms of negotiated procurement.

The Tuesday hog slaughter was estimated at 411,000 head, 4,000 less than last week and down 16,000 from a year ago.