Market News

A slow day in the cattle trade

 

The cattle trade was slow on Thursday with just a few scattered sales reported in parts of the North at 209.00 to 210.00 on a dressed basis. While the South may have completed trade for the week, the belief is the North still needs to trade more cattle before packers can exit for the long weekend. Northern bids range from 208.00 to 210.00. Asking prices are probably around 210.00 plus dressed, and 133.00 to 134.00 live. Thursday’s cattle slaughter was estimated at 115,000 head, 8,000 more than last week, and 3,000 greater than a year ago.

Boxed beef cutout values were steady to weak on light to moderate demand and moderate offerings. Choice beef 246.11, up- .03, select 218.98, down .62.

Chicago Mercantile Exchange live cattle contracts settled 1.00 to 1.89 higher as moderate to strong buyer support quickly moved back into the cattle complex with triple digit gains. The significant adjustment in livestock markets had little to do with market fundamentals which remain weak due lower cash markets and mixed boxed beef values, but lack of overall market activity before the long holiday weekend.

Feeder cattle settled .72 to 2.45 higher with only the May contract down .47. Despite the firm selling pressure early in the session, strong triple digit gains quickly moved into the feeder cattle market, changing the course of market direction near midday. Traders’ quickly adjusted to previous market losses seen earlier in the week. An attempt to make an end of the week market rally and shift prices higher would not only help to sustain weekly chart prices, but would also mean adjusting monthly charts heading into the summer months.

The Springfield, Missouri Livestock Marketing Center had receipts of 2,190 feeder cattle on Wednesday. Compared to last week, steers and heifers sold 5.00 to 10.00 higher, with instances of 15.00 higher on steer calves weighing less than 600 pounds. The supply was heavy with moderate to good demand. Feeder steers medium and large 1 weighing 689 pounds averaged 158.16 per hundredweight. Large 3 dairy steers averaging 479 pounds brought 96.22. Feeder heifers weighing 618 averaged 138.54.

Lean hogs settled .05 to .75 higher as buyer support moved into hog complex as cash support developed in the morning reports. This moved all nearby futures contracts higher and sparked underlying commercial support through the complex. June futures led the market higher with the contract closing at 80.95.

Barrows and gilts in the Iowa/Minnesota direct trade closed 1.56 higher, the West was up 1.69 with both at 72.47 weighted average on a carcass basis. Nationally the market was up 1.42 at 71.73. Missouri direct base carcass meat price was steady from 64.00 to 66.00. Illinois direct trade hogs on a live basis closed weak from 44.00 to 52.00, sows 2.00 lower from 37.00 to 48.00.

The pork carcass cutout value was 90.30, up .44 FOB plant.

Looking ahead to June, the historical odds for higher cash prices are quite good. The June monthly average has been higher than May more than 70 percent of the time over the last ten years, according to DTN’s John Harrington.

The Thursday hog kill was estimated by USDA at 440,000 head, 4,000 more than last week, and 10,000 greater than 2016.

Add Comment

Your email address will not be published.


 

Stay Up to Date

Subscribe for our newsletter today and receive relevant news straight to your inbox!