Market News

Cattle are priced higher

There were a few scattered bids in feedlot country on Wednesday at 126.00 live in Kansas, and 131.00 live in Nebraska and dressed bids 210.00 to 214.00. Since prices were $4.96 higher on the Fed Cattle Exchange Auction at 133.35 asking prices are now around 132,00 to 134.00 in the South and 215.00 to 217.00 in the North. While it is possible that some trade may develop late today, it is looking like many have dug in their heels and are holding for higher money. The Wednesday slaughter is estimated at 116,000 head, 3,000 more than last week, and 10,000 greater than a year ago.

Boxed beef cutout values were lower on choice and firm on select on light to moderate demand and offerings. Choice beef was down 1.93 at 223.00, select was up .39 at 215.80.

Live cattle contracts on the Chicago Mercantile Exchange settled 1.70 to 2.72 higher. Following the break through resistance levels on Tuesday and faced with the possibility of another round of higher cash cattle trade this week, traders remained increasingly bullish on Wednesday. This resulted in triple digit gains in all contracts with nearby futures holding gains of more than 2.00 per hundredweight.

Feeder cattle settled 2.00 to 4.17 higher following the aggressive nature of the live cattle trade. The overall momentum seen in the cattle market over the last weeks has gone unchecked with traders ratcheting prices higher on combined fundamental and technical support.

The Ozarks Regional Stockyards at West Plains, Missouri had receipts of 4,570 feeder cattle on Tuesday. Compared to last week steer and heifer calves under 600 pounds traded 4.00 to 8.00 higher, with heavier weight calves and yearlings steady to 3.00 higher. The demand was very good on a heavy supply, including several pot loads of yearling steers and heifers. The USDA Comprehensive Boxed Beef report shows wholesale prices have increased for several weeks. Demand looks to continue to improve as we enter the grilling season with plenty of inventory available. Feeder steers medium and large 1 averaging 678 pounds traded t 141.06 per hundredweight. 670 pound heifers averaged 125.42.

Lean hogs settled .22 higher to .57 lower with the early support in the market falling flat on its face through the morning trading session as the light short covering that quickly developed could not draw additional buyer support back into the complex. The Lack of support in pork values added to the longer term market uncertainty.

Barrows and gilts in the Iowa/Minnesota direct trade closed .54 lower at 66.38 weighted average on a carcass basis, the West was down .59 at 66.32, and nationally the hog market was .52 lower at 65.67. Missouri direct base carcass meat price was steady to 1.00 higher from 58.00 to 61.00. Illinois direct trade hogs closed steady from 40.00 to 49.00 live. Illinois sows were steady from 30.00 to 43.00.

The pork carcass cutout value was down 1.92 at 79.04 FOB plant. Everything was lower except the belly primal.

In anticipation of next week’s Hogs and Pigs report, short covering and position evening prior to the official numbers should be somewhat supportive of deferred lean futures, according to DTN analysts.

Wednesday’s hog slaughter was estimated at 441,000 head, 1,000 more than last week, and 3,000 greater than last year.