Market News

Showlists appear generally smaller

As expected on Tuesday, cattle country was typically quiet following the distribution of the week’s showlists. Ready numbers appear to be generally smaller than last week with only Colorado showing more cattle. Some showlists have been priced around 122.00 in the South, and 195.00 in the North. The kill was estimated by USDA at 111,000 head, 5,000 below last week, and 2,000 less than last year.

Boxed beef cutout values were generally steady on light to moderate demand and offerings. Choice beef 191.62, up .23, select 187.23, down .23.

Live cattle contracts on the Chicago Mercantile Exchange settled .37 to 1.07 higher as firm buyer support held in the nearby futures trade as the underlying support from outside commodity markets helped to draw unified support to the complex. Follow-through buying and cash optimism were supportive to the trade.

Feeder cattle settled .10 to .75 higher after trading mixed for much of the session as traders focused on the overall lack of support during the morning. There continues to be growing uneasiness concerning the wide ranging gains of commodity markets as well as increased overall concern that trade interest may slow through the end of the month. The lack of consistency in beef values in the morning report added even more uncertainty to deferred feeder cattle trade.

At the Sioux Falls Regional Stockyards at Worthing South Dakota feeder cattle receipts totaled 4081 head on Monday, Compared to last week, feeder steers trended steady to 5.00 higher. Heifers were steady to 5.00 higher with instances of up to 8.00 higher. Demand was good to very good for a large offering of long time weaned spring born calves and yearling cattle. Cattle were carrying mostly moderate flesh. It was an active market despite freezing rain and questionable road conditions across much of the area. Feeder steers medium and large 1 averaging 671 pounds traded at 144.01 per hundredweight. 674 pound heifers averaged 132.75.

Lean hogs settled .35 higher to .52 lower. Little movement was seen through the entire lean hog complex with prices once again mixed. Narrow price shifts developed, but the inability to break out of the tightly grouped trading range limited overall activity levels and the interest of most buyers to step back into the market. There may be some additional support seen through the next couple of weeks as more focus is placed on overall hog numbers available to the market.

Barrows and gilts in the Iowa/Minnesota direct trade closed .09 higher at 63.00 weighted average on a carcass basis, the West was up .26 at 62.99, and nationally the market was up .44 at 62.40. Missouri direct base carcass meat price was 2.00 to 3.00 higher from 54.00 to 55.00. In the Midwest live market only Zumbrota, Minnesota reporting with hogs 2.00 higher at 38.00. Other markets were closed due to inclement weather.

The pork carcass cutout value was up .59 at 80.53 FOB plant. Bellies and hams were up the most.

Given the fact that pork processing margins remain very profitable, the assumption can be made that packers will once again put together a fairly aggressive Saturday kill.

Hog slaughter was estimated at 428,000 head on Tuesday, up 3,000 from last week, but down 9,000 from last year.