Market News

Feedlot cattle sell sharply higher

USDA Mandatory reported cattle trade and demand was moderate in Kansas on Thursday with live sales at 122.00. In Nebraska dressed sales sold 5.00 higher than last week at 195.00, with live sales mostly 3.00 to 4.00 higher from 122.00 to 122.50, with the bulk at 122.00. Texas Panhandle trade and demand was moderate with sales 4.00 higher than last week at 123.00. Colorado feedlot operators sold cattle for 122.00, 3.00 higher than the previous week. The cattle slaughter was estimated at 114,000 head, 2,000 less than last week, and down 1,000 head from last year.

Boxed beef cutout values ended the day weak to lower on light demand and light to moderate offerings. Choice beef was down 1.62 at 191.60, select was .57 lower at 187.49.

Receipts of feeder cattle at the St. Joseph, Missouri Stockyards on Thursday totaled 2,354 head. Compared to last week, steers under 750 pounds, and heifers weighing less than 700 pounds traded 2.00 to 5.00 higher, while the rest of the offering was steady. The auction moved along at a pretty good clip in the morning and prices moved at the top of the trading ranges higher at mid-day as reputation strings of cattle came through the ring. Demand was good to very good with a wide offering of good quality calves weighing from 450 to 800 pounds. Feeder steer calves medium and large 1 weighing 616 pounds averaged 145.02 per hundredweight. Heifer calves averaging 628 pounds brought 132.08.

Live cattle contracts on the Chicago Mercantile exchange settled .30 to .75 higher on Thursday and the driver of the support was positive cash news and technical buying. The February contract closed at 121.02, and a close at this level indicates the potential development of follow through activity stepping into the complex at the end of the week.

Feeder cattle ended the session .25 to .95 higher after the early trade saw initial pressure. Significant gains in cash cattle prices was the main supportive factor in the market.

Lean hogs settled .15 to .97 higher as light to moderate support trickled into the market as the firmness seen in the cattle market helped to wash away seller pressure which developed through the early trade. The most significant gains were seen in the late 2017 contracts with October and December both .97 higher. Outside market support helped to boost gains near the close.

Barrows and gilts in the Iowa/Minnesota direct trade closed .10 higher at 63.43 weighted average on a carcass basis, the West was up .08 at 63.38, and nationally the market was up .54 at 62.88. Missouri direct base carcass meat price closed steady from 55.00 to 56.00. Midwest hogs on a live basis were steady to 1.00 higher from 38.00 to 46.00.

The pork carcass cutout value was up .06 at 78.90 FOB plant.

For the week ending January 14, Iowa barrows and gilts averaged 281.9 pounds .6 pounds lighter than the prior week and 3.4 pounds smaller than 2016.

Thursday’s hog kill was estimated by USDA at 442,000 head, 4,000 more than last week, and up 2,000 from last year.