Market News

Cattle show lists look larger than last week

The cash cattle market was typically quiet on Monday afternoon as buyers and sellers focused on the distribution of the new showlists. It looks like the late month offering is somewhat larger than last week with only Colorado showing about the same number of ready steers and heifers. Asking prices are not well defined, but the guess is bullish feedlot managers will eventually price ready cattle anywhere from 2.00 to 4.00 higher on a live basis. The slaughter was estimated at 116.000 head, 14,000 more than last week, and 12,000 greater than last year.

Boxed beef cutout values ended the day higher to sharply higher on moderate to good demand and light offerings. Choice boxed beef 201.48, up 2.52, select 197.68, up 1.60.

Chicago Mercantile Exchange live cattle contracts settled .55 to 1.62 higher. The front month February contract led the market rally even though overall trade and open interest remained at a minimum in the February contract. Support in the market came from sliding grain markets and the firmness in beef values.

Feeder cattle futures ended the session Monday 1.15 to 2.15 higher. Aggressive triple-digit gains quickly developed as traders tried to cover the sharp losses that developed at the end of last week. Trade volume remained light to moderate but that did not limit nearby contracts from holding strong gains. The volatility in prices over the last week continues to create concerns that even wider price swings could develop through the coming days.

Feeder cattle receipts at the Joplin Regional Stockyards on Monday totaled 5,000 head. Compared to last week steer and heifer calves were steady, yearlings trended 2.00 to 3.00 lower on a light early test. The demand was moderate to good on a moderate supply. Feeder steers medium and large 1 weighing 600 to 650 pounds brought 135.00 to 147.00 per hundredweight. 600 to 650 pound heifers traded from 125.00 to 128.00.

Lean hogs settled unchanged to .30 higher with only the July contract down by .17. The overall volume across the complex remained sluggish. The outside markets in cattle were supportive to the complex.

Barrows and gilts in the Iowa/Minnesota direct trade closed .39 lower at 68.36 weighted average on a carcass basis, the west was down .44 at 68.33, and nationally the market was .99 lower at 67.58. Missouri direct base carcass meat price was 1.00 to 2.00 lower from 62.00 to 63.00. Midwest hogs on a live basis closed 1.00 lower to 2.00 higher from 45.00 to 62.00.

The pork carcass cutout value was down 1.46 at 80.45 FOB plant. Bellies were down 13.31, but ribs were over 3.00 higher.

A crack in pork demand surfaced last week in the belly complex as prices plunged midweek taking with it the cutout value and lean hog futures. The sharp break did shift the short term market trend in lean futures into a bearish pattern while the longer term trend is now neutral or best, according to DTN analysts.

The Monday hog kill was estimated at 441,000 head, 9,000 more than last week, and up 37,000 from last year.