Market News

Cattle trade delayed until Friday

After a flurry of cattle buying interest Thursday morning, packer inquiry appeared limited in the afternoon. Perhaps immediate procurement designs have been temporarily checked by stronger live cattle futures and aggressive feedlot resolve. Asking prices are around 105.00 to 106.00 in the South, with bids there from 102.00 to 104.00. Feedlot operators are pricing cattle at 165.00 plus in the North, and packers are bidding 160.00 to 162.00. The kill totaled 113,000 head, 3,000 more than last week, and 6,000 greater than last year.

Boxed beef cutout values are lower on the choice, firm on select on light to moderate demand and moderate offerings. Choice beef down .77 at 181.54, select 168.81, up .36.

Live cattle futures contracts closed .20 to 1.07 higher on the Chicago Mercantile Exchange on Thursday. Firm buyer support moved back into the market as additional commercial buying moved back into the complex. Short covering, speculative buying, and positive cash expectations were supportive.

Feeder cattle saw strong support early in the session with triple digit gains in most contracts following the early rally in live contracts. However by midday the support diminished and the market closed mixed from .17 higher to .47 lower.

The Huss Platte Valley Nebraska Auction sold 2430 feeder cattle on Wednesday. Compared to last week, steers and heifers sold steady to 5.00 higher. The demand was good from start to finish with internet activity noted, Feeder steers medium and large 1, calves weighing 628 pounds traded at 127.37 per hundredweight. Heifer calves averaging 626 pounds brought 119.52.

Lean hogs closed .65 to 1.40 higher although trade was sluggish for much of the session as gains held. Prices ended slightly away from session highs due to the lack of trader intensity moving into the market. The ability to keep prices hovering over triple digit gains in nearby contracts helped to sustain support and likely bring about long term stability through the complex.

Barrows and gilts in the Iowa/Minnesota direct trade closed .18 higher at 45.19 weighted average on a carcass basis, the West was up .09 at 45.08, and the national market was down .06 at 44.75. Missouri direct base carcass meat price closed steady from 38.00 to 39.00. Midwest hogs steady to 6.00 higher 35.00 to 36.00.

Pork carcass cutout value was .29 higher, 73.37 FOB plant. Hams and picnics up the most.

For the week ending October 22, Iowa barrows and gilts averaged 281.8 pounds, .4 pounds heavier than the previous week, and .4 pounds lighter than 2015.

The hog slaughter was estimated by USDA at 406,000 head, 35,000 less than last week, and down 27,000 from last year.

At Kalona, Iowa, sheep receipts totaled 364 head. There was no official trend as the sale had not been reported for the last two weeks. The trade was active and demand was good. Slaughter lambs wooled choice and prime 2-3 weighing 118 pounds averaged 138.73 per hundredweight. Feeder lambs medium and large 1-2 weighing 82 pounds brought 171.63 per hundredweight. There were 304 goats in the run. Trade was active with very good demand. Slaughter kids selection 1 weighing 58 pounds averaged 128.29 per head.