Market News

Feeder cattle higher at Monday auctions

Cattle country is quiet after the collection of this week’s showlists with bids and asking prices not defined. The new lists appear to be mixed, lower in Colorado and Nebraska, but higher in Kansas and Texas. Significant trade volume will probably be delayed until sometime in the second half of the week.

Monday’s cattle slaughter was estimated at 108,000 head, 7,000 less than last week, and down 1,000 from last year.

Boxed beef cutout values were higher to sharply higher in the afternoon report on moderate to good demand and light offerings. Choice beef was up 2.05 at 214.13, select was 1.30 higher at 200.78.

Chicago Mercantile Exchange live cattle contracts settled.35 to 1.05 higher, and held the gains throughout the morning trade. Early week bulls are psyched by the recent show of cash strength, and largely confident the country show is not done in that regard. Last week’s five area steers averaged 128.01, over 1.50 higher than the April closing price.

Feeder cattle contracts settled .15 to 2.00 higher than last week’s Thursday close. Triple digit gains were seen in all contract months with the exception of spring 2018. Higher feeder cattle prices at auctions on Monday and lower action in the corn trade were supportive to futures.

Feeder cattle receipts at the Joplin, Missouri Regional Stockyards on Monday totaled 4,000 head. Compared to last week, steer and heifer calves were 3.00 to 10.00 higher, yearlings were 3.00 to 6.00 higher. Demand was good on a light supply. Feeder steers medium and large 1 weighing 550 to 600 pounds traded from 161.00 to 169.00 per hundredweight. 550 to 600 pound heifers brought 144.00.

Lean hog s settled .25 to .57 lower in fairly listless early week business with bulls and bears uncertain about the timing of the seasonal trend. Lower cash sales and a lack of buying interest were also negative to the trade.

Barrows and gilts in the Iowa/Minnesota direct trade closed .18 lower at 56.01 weighted average on a carcass basis, the west was down .06 at 56.00, and nationally the market was .53 lower at 55.53. Missouri direct base carcass meat price closed steady from 49.00 to 50.00. Illinois direct trade hogs on a live basis were steady from 35.00 to 42.00 and sows were steady from 30.00 to 43.00.

After skyrocketing earlier this year pork belly prices are getting back to more normal levels, attractive enough that retailers will be able to put together forward packages for BLT season that could spark another sharp rally in the belly complex according to DTN analysts.

The pork carcass cutout value was .38 higher at 74.96 FOB plant.

Hog slaughter on Monday was reduced some due to the Easter holiday. The kill was estimated at 300,000 head, 142,000 less than last week, and 137,000 head less than last year.