Market News

Feedlot cattle trade sharply higher

A light cattle trade was reported in most areas on Wednesday afternoon. Live sales in Texas and Kansas look about $3.00 higher at 128.00. Some regional buying in the North has been marked as high as 210.00, nearly 9.00 higher than last week’s weighted average basis Nebraska. DTN reports many cattle remain unsold. Asking prices are significantly higher at 130.00 plus in the South, and 210.00 plus in the North waiting for packer bids to improve further. The feedlot trade followed the lead of the Fed Cattle Exchange internet auction that sold 3,350 cattle in the morning at a weighted average price of 128.39, last week’s average was 123.69. The cattle kill was estimated at 113,000 head, 2,000 less than last week, but 1,000 more than last year.

Boxed beef cutout values were higher on choice and lower on select on light to moderate demand and light offerings. Choice beef 221.32, up 1.18, select 213.14, down .75.

Chicago Mercantile Exchange live cattle contracts settled .32 to 1.37 higher. A combination of packer support, cash market support in the Fed Cattle Exchange, and widespread buyer activity redeveloping in the feeder cattle markets sparked triple digit gains across nearby live cattle contracts.

Feeder cattle contracts settled .40 to 1.37 higher despite the sluggish moves during the first hour of trade on Wednesday. The aggressiveness of all cattle trade put more emphasis on the potential that additional buyer activity may remain well rooted in the shadows. The support over the last week has quickly moved prices to the top of the market range, which is sparking some additional market momentum.

Feeder cattle receipts at the Ozarks Regional Stockyards at West Plains, Missouri totaled 2,469 head. Compared to last week, the bulk of the steers and heifer calves traded steady to 2.00 higher with a few spots of 5.00 higher. There were too few yearlings for an adequate comparison, however undertones were steady to firm. Demand was good on a moderate supply. Feeder steers medium and large 1 averaging 581 pounds brought 151.44. 566 pound heifers brought 131.93.

Lean hog contracts settled .15 to .75 lower as selling pressure increased. The inability to bring buyers back into the market following early week gains and trade hovering in a narrow range through much of the session led to a weaker market tone.

Barrows and gilts in the Iowa/Minnesota direct trade closed .98 higher at 67.54 weighted average on a carcass basis, Western hogs were up .44 at 67.47, and nationally the market was .19 higher at 66.74. Missouri direct base carcass meat price closed steady from 55.00 to 61.00. Illinois direct hogs on a live basis were steady from 40.00 to 49.00, sows 1.00 higher from 28.00 to 39.00.

The pork carcass cutout value was down .58 at 82.18.

Even if hog slaughter eases a bit over the next 2-4 weeks, commercial tonnage should remain as great or greater given the seasonal tendency of carcass weights to gradually increase from now into mid-April.

The hog kill was estimated at 440,000 head, 1,000 less than last week, and 22,000 more than last year.

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