Market News

Cattle trade in the north

Moderate cattle trade activity was evident on Thursday afternoon in the North with most dressed deals marked at 170.00, $5.00 lower than last week’s weighted average basis Nebraska. There doesn’t seem to be much activity in the South, meaning buyers are willing to wait until Friday before doing business. Some showlists in Kansas and Texas are priced around 112.00 or better. The cattle kill totaled 116,000 head, even with last week, but 3,000 more than a year ago.

Boxed beef cutout values were firm on choice, weak on select on light to moderate demand and offerings. Choice boxed beef up .54 at 189.48, select down .30 at 171.42.

Chicago Mercantile Exchange live cattle futures traded mixed in a narrow trading range for much of the session before closing .12 to .85 lower. The market was pressured by long liquidation, and beef demand worries.

Feeder cattle settled .02 to .92 lower after moving back from the sharp triple digit losses following the lack of trade direction through the morning. Light pressure was seen in the market and the ability to move contracts off the morning lows was considered a moral victory for the cattle market.

The Huss Platte Valley Auction in Nebraska had receipts of 4455 feeder cattle. Compared to last week, steers sold unevenly and heifers were 3.00 to 6.00 higher. Demand was good from start to finish with the sale getting a tick stronger at the close. Most were longtime weaned with a few bawling calves in the mix. It was bitter cold in the trade area on Wednesday. Feeder steers medium and large 1 averaging 786 pounds brought 138.09 per hundredweight. 734 pound heifers averaged 129.55.

Kalona, Iowa sheep and goat Auction had receipts of 350 sheep and 267 goats on Wednesday. Compared to the previous week, slaughter lambs were mostly steady with some weakness in lambs under 60 pounds. There were no feeder lambs for a true test. Trade was active with good demand. Slaughter lambs wooled choice and prime 2-3 weighing 102 pounds averaged 145.63 per hundredweight. The goat trade was very active with very good demand. Slaughter kids selection 1 weighing 65 pounds brought 107.40 per head.

Lean hogs settled .20 to 1.15 higher as strong follow through gains developed through the Thursday session. Increased trade continued to develop following the firm gains in the cash markets. The support is likely to help bring long term buying activity into the market.

Barrows and gilts in the Iowa/Minnesota direct trade closed 1.82 higher, the West was up 1.92 with both at 53.85 weighted average on a carcass basis. Nationally the direct trade was 1.83 higher at 53.45. Missouri direct base carcass meat price was steady from 39.00 to 40.00. Midwest hogs on a live basis were steady to 2.00 higher from 25.00 to 30.00.

The pork carcass cutout value was up .75 at 75.88 FOB plant.

For the week ending December 3, Iowa barrows and gilts averaged 281.2 pounds, .7 pounds heavier than the previous week, though still 3.2 pounds less than 2015.

The hog slaughter is estimated at 443,000 head, 17,000 greater than last week, and 4,000 more than last year.