Market News

Southern cattle trade may be finished for the week

The cash cattle trade was limited on Thursday afternoon with some buyers and sellers apparently waiting until Friday. DTN reported a few cattle sold in Nebraska at 137.00 to 138.00 on a live basis, and some in Colorado at 136.00. The South looks like business is essentially done for the week. Cattle still on the showlists are priced around 140.00 live, and 230.00 dressed. The kill totaled 116,000 head, 1,000 below last week, but 3,000 more than a year ago.

Boxed beef cutout values were higher to sharply higher in the afternoon report on moderate demand and light to moderate offerings, Choice beef 246.86, up 2.22, select 226.66, up 2.04.

Live cattle contracts on the Chicago Mercantile Exchange settled .27 to .82 lower on Thursday and backed away from session lows and triple digit losses, there was aggressive liquidation across all contracts. There remains uncertainty in the market with pressure in cash markets and futures quickly unwinding positions. The nervousness seen in the complex and concern of cash market support may limit buyer interest late in the week.

Feeder cattle settled 1.50 to 2.12 lower but off the day’s lows. At one point in the trade the front month futures were pulled more than $12.00 off recent highs seen last week.

Feeder cattle receipts at the Springfield, Missouri Livestock Marketing center totaled 2875 head on Wednesday. Compared to last week, steer calves under 550 pounds, and heifer calves under 450 pounds were 8.00 to 14.00 lower, heavier weight calves were 1.00 to 8.00 lower, following last week’s sharply higher trend. There were not enough yearlings last week for a price comparison, but the undertone was lower. Demand was moderate on a heavy supply. Feeder steers medium and large 1 weighing 576 pounds averaged 161.87 per hundredweight. Feeder heifers weighing 566 pounds traded at 147.16.

Lean hog contracts settled .15 to .70 lower with only the soon to expire May contract up .47. Moderate pressure held in the complex. The sharp losses seen in cattle futures as well as pressure in hog fundamentals eroded morning buyer support but still created only limited pressure to recent gains. Trade volume was light as traders appeared to be looking for any reason to step back into the complex through the end of the week.

Barrows and gilts in the Iowa/Minnesota direct trade closed .57 higher at 70.72 weighted average on a carcass basis, the West was up .52 at 70.67, and nationally the market was .22 higher at 69.44. The Missouri direct base carcass meat price is steady from 52.00 to 62.00. Illinois direct trade hogs on a live basis were 2.00 to 3.00 higher from 42.00 to 51.00, sows 3.00 lower 39.00 to 52.00.

The pork carcass cutout value was 81.85, up .73 FOB plant in the afternoon report. Bellies were up 3.27 and ribs 2.95 higher.

For the week ending May 6, Iowa barrows and gilts averaged 283 pounds, 1.5 pounds lighter than the prior week and .2 pounds smaller than 2016.

The cash hog index is coming on like gangbusters, if such aggressive appreciation continues, and with spot May expiring on Friday, June could soon feel a fire under its feet.

Thursday’s hog slaughter is estimated at 438,000 head, 3,000 less than last week, but 4,000 more than last year.