Market News

Cattle may be priced higher on Monday

Cattle country was quiet on Friday with cash business clearly done for the week. Given this week’s success, there is little doubt that producers will start the week pricing cattle higher by at least 2.00 or more. The weekly cattle slaughter was estimated at 595,000 head, 5,000 more than the previous week, and 10,000 greater than 2016.

Boxed beef cutout values were firm to higher on light to moderate demand and moderate offerings. Choice beef was up 1.44 at 217.15, and select up .32 at 203.89.

The monthly cattle on feed report released on Friday afternoon looks somewhat negative. Placements in feedlots last month were up 11%. Marketing’s in March were 10% greater than 2016. The April on feed total was essentially unchanged from the previous year.

Chicago Mercantile Exchange live cattle contracts settled .02 to .25 higher. There did not appear to be a lot of action in the complex as traders took profits and braced before the April cattle on feed report. As usual most eyes were focused on March placement activity with pre-report guesses at 7 to 8% higher.

Feeder cattle contracts settled .50 lower to .65 higher with April up the most as it caught some buying interest thanks to this week’s appreciation of the cash index.

Feeder cattle receipts at Missouri auctions this week totaled 28,903 head. Compared to last week feeder steers and heifers traded steady to 5.00 higher, instances of 10.00 higher on calves. Demand was good and the supply was moderate. There was a positive tone throughout the cattle industry all week. Feedlots are current and there was a higher fed cattle trade. Lighter carcass weights means feedlots are needing to restock their inventories. Feeder steers medium and large 1 averaging 524 pounds averaged 175.86 per hundredweight. 520 pound heifers brought 148.48.

Lean hogs settled .22 to .77 lower as they remained on the defensive linked to plentiful country offerings and choppy at best wholesale demand.

Barrows and gilts in the Iowa/Minnesota direct trade closed .01 higher at 53.42 weighted average on a carcass basis, the West was down .21 at 53.32, and nationally the market was .47 lower at 53.51. Missouri direct base carcass meat price was steady from 47.00 to 49.00. Illinois direct trade hogs were weak on a live basis from 35.00 to 42.00. Sows were firm from 31.00 to 43.00.

The pork carcass cutout value was .88 higher at 75.47 FOB plant with hams and bellies up the most.

Feeder pig receipts nationally this week totaled 87,396 head. Early weaned pigs and all feeder pigs were 2.00 to 3.00 per head lower. Demand was light to moderate for moderate offerings. Early weaned pigs on a 10 to 12 pound basis traded from 23.00 to 38.00 per head. 40 pound basis pigs brought 45.00 to 65.00 per head.

The weekly hog kill was estimated at 2,287,000 head, 64,000 more than last week, and 54,000 greater than last year at this time.

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