Market News

Cattle trade at higher prices

USDA Mandatory reported cattle trading in the Southern and Northern Plains has been active on very good demand. Compared to last week in the South, live sales are 5.00 higher from 124.00 to 125.00. In Nebraska live sales were 4.00 to 5.00 higher also from 124.00 to 125.00, and dressed sales 6.00 higher at 196.00. In Colorado when compared to last week, live sales were 4.00 to 5.00 higher from 124.00 to 125.00. As of late Wednesday afternoon in the Western Cornbelt trading has been limited on moderate demand. There were not enough sales for a full market trend. The estimated sales volume was 74,000 head. Wednesday’s cattle slaughter was estimated at 114,000 head, 3,000 greater than last week and up 9,000 from last year.

Boxed beef cutout values were higher on select and sharply higher on choice on moderate demand and offerings. Choice beef 194.53, up 2.72, select 190.81, up 1.00.

Prices and the number of cattle sold on the Weekly Fed Cattle Exchange Internet Auction saw improvement over last week. 3,350 cattle were listed, and 3,065 head were sold. The weighted average price was $122.10 per hundredweight, about 300 head in Texas sold for as much as 124.50. Last week the average price was 118.77.

Chicago Mercantile Exchange live cattle contracts settled .40 to 2.20 higher as strong commercial support flooded back into the live cattle complex. With the front months surging to triple digit gains. The support came on a combination of follow-through support that developed Tuesday as well as firming cash and boxed beef values.

Feeder cattle saw light gains of .27 to .77 despite the aggressive underlying support seen in the live markets. This support from the live cattle trade has pushed prices back to the positive level for the day, but with overall lack of strong longer term buyer support and uncertainty as to how the end of the week cattle on feed report will affect placements most traders remain cautious.

Lean hog futures closed .90 to 2.60 lower as sellers quickly moved into both nearby and deferred contract months. All contracts through February of 2018 held triple digit losses with traders not only concerned about further liquidation through the futures trade, but also recent weakness seen in cash and wholesale pork values, according to DTN analysts.

Barrows and gilts in the Iowa/Minnesota direct trade are .60 lower at 72.95 weighted average on a carcass basis, the West was down .74 at 72.89, and nationally the hog market was .32 lower at 72.42. Missouri direct base carcass meat price closed steady to 1.00 higher from 63.00 to 65.00. Illinois direct trade on a live basis was steady from 42.00 to 52.00.

The pork carcass cutout value ended the day sharply lower, 80.24 down $4.30. The belly primal was 24.54 lower.

Negotiated hog receipts were again limited on Tuesday, a situation that could easily force packers to find more spending money in order to fund fairly aggressive slaughter plans through the remainder of the week.

The Wednesday hog slaughter was estimated by USDA at 443,000 head, 10,000 more than last week, and 25,000 greater than last year.

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