Market News

Cattle showlists appear somewhat smaller

Feedlot country was quiet on Monday as packers completed the collection of this week’s showlists. Ready numbers are smaller in Texas, Kansas and Colorado, especially Texas. On the other hand Nebraska producers are showing quite a few more fed steers and heifers for sale. Overall the late month supplies appear to be somewhat smaller than last week. Monday’s cattle slaughter is estimated at 115,000 head, 7,000 more than last week, and 4,000 greater than last year.

The boxed beef cutout values were firm to higher on moderate demand and moderate offerings. Choice beef 218.67, up 1.51, select 204.29, up .40.

Chicago Mercantile Exchange live cattle contracts settled .30 to 1.85 lower with triple digit losses from May through November. Aggressive pressure moved into the market and prices quickly moved away from the support seen over the last couple of weeks. Even with the downward movement, it is hard to imagine the overall tone of the market is turning bearish at this point, as traders continue to focus on the potential of recent market support and some underlying strength that could still move back into the complex during the next couple of weeks.

Feeder cattle settled .30 to 1.80 lower. Traders continued to focus on the cattle on feed report released on Friday with 11% more feeder cattle placed in feedlots compared to an estimated 7.5%. The bearishness of the market could continue through the next couple of days. The overall pullback seen over the last couple of weeks in the cattle markets is also giving the market pressure, according to DTN analysts.

The Oklahoma National Stockyards had receipts of 9,000 cattle on Monday. Compared to last week feeder steers and heifers traded mostly 1.00 to 3.00 higher with instances of 5.00 higher. Steer and heifer calves sold steady to 5.00 higher on limited comparable offerings. Demand remains good for feeder cattle, despite lower Chicago Mercantile Exchange futures and a more than expected placement total number on Friday’s cattle on feed report. Feeder steers medium and large 1 weighing 600 to 650 pounds brought 159.00 to 163.50 per hundredweight. Feeder heifers weighing 6 to 650 brought 141.00 to 146.50.

Lean hog futures contracts settled .02 to 1.37 higher. Strong morning gains developed through the nearby lean hog futures trade focusing on short-covering activity. May futures were up the most, although at this point any market move is just window dressing given the aggressive downward price moves seen over the last couple of weeks and significant pressure through the complex. Unless some support in is seen in pork values and the cash hog market this new found rally will be meaningless.

Barrows and gilts in the Iowa/Minnesota direct trade closed .40 higher at 53.96 weighted average on a carcass basis, the west was up .33 at 53.75, and nationally the market was up .08 at 53.41. Missouri direct base carcass meat price was steady from 47.00 to 49.00. Illinois direct hogs on a liv4e basis were weak from 33.00 to 42.00. Sows 2.00 higher from 33.00 to 45.00.

The pork carcass cutout was down .98 at 74.49 FOB plant. Bellies were $4.55 lower.

Live hog weights should be very close to a seasonal top as producers anticipate a price top in late April or early May. Once the top is in, weights should consistently drop from late spring through mid-August.

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