Market News

Livestock futures closed sharply lower

Total trade volume in the cattle last week was smaller across the board. Given the combination of smaller trade volume and a larger weekly slaughter, you might have thought that showlists would be somewhat larger this week. However, it looks like the new offering is smaller in all states except Colorado. Asking prices are not well defined, but it is a good bet that feedlot managers will be thinking higher by at least $2.00.The Monday kill totaled an estimated 116,000 head, the same as last week, but 18,000 more than last year.

Boxed beef cutout values are lower in the afternoon report on light to moderate demand and offerings. Choice beef 219.91, down 1.71, and select 213.62, down 1.93.

Chicago Mercantile Exchange live cattle contracts settled .62 to 1.40 lower on Monday. Moderate pressure was evident in the complex. Traders focused on pressure from the Brazilian cattle market news, but still concentrated on market stability moving forward based on the potential of longer term firming beef market supply tightness in the domestic market. This could help to bring about additional long term market support over the near term.

Feeder cattle settled 1.22 to 2.62 in the red. There was strong pressure in the feeder market as moderate pressure in the morning continued to develop through the session as softness was present in all markets. The lack of support in boxed beef values and overall interest in the entire livestock market created a strong pullback in the feeder futures contracts.

Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 6,200 head. Compared to last week, feeder steers and heifers traded 2.00 to 5.00 higher. Steer and heifer calves were unevenly steady on more limited offerings. The quality was average to attractive. The demand remains good for all classes. Feed yards have become more optimistic since the beginning of the year with the latest market conditions adding to their bottom line. Feeder steers medium and large 1 weighing 650 to 700 pounds trading from 142.50 to 147.75. Feeder heifers weighing 650 to 700 pound brought 131.50 to 135.25.

Lean hogs settled .62 to 2.22 lower as triple digit loses again swept through hog futures markets. This latest move has quickly added to the most recent pressure in the complex and broken through support levels of 66.75 per hundredweight seen early in March. The concern is increased supplies will be unable to limit the ability to keep demand from becoming burdensome over the next several weeks and months. This could put more pressure on prices through the spring and summer, limiting seasonal price moves, according to DTN analysts.

Barrows and gilts in the Iowa/Minnesota direct trade closed .63 lower at 63.81 weighted average on a carcass basis, the West was down .63 at 63.74, and nationally the hog market was down .69 at 63.68. Missouri direct base carcass meat price closed 1.00 to 3.00 lower from 41.00 to 48.00. Illinois direct hogs on a live basis were steady from 40.00 to 49.00. Sows 1.00 higher from 32.00 to 45.00

The pork carcass cutout value was .64 higher at 79.12 FOB plant. The belly, rib and butts were all higher.

Hog slaughter was estimated at 441,000 head, the same as last week, but 143,000 more than last year.