Market News

Cattle and hog futures close higher

The total trade volume in the cattle last week was larger in all areas. The new showlists collected on Monday are mixed with larger numbers in Nebraska and Texas, but smaller offerings in Kansas and Colorado. The overall offering of fed cattle appears to be about steady. The country trade was quiet and bids and asking prices were not reported.

The cattle slaughter was estimated by USDA at 110,000 head 12,000 less than both last week and last year.

Boxed beef cutout values were sharply lower on light to moderate demand and moderate offerings. Choice beef was down 1.68 at 209.77, and select was 2.31 lower at 199.96.

Live cattle contracts on the Chicago Mercantile Exchange settled 87 to 135 points higher with the focus on early moth trade taking over the complex. This brought about increased commercial support, and triple digit gains. The interest seemed to be on trade potential later in the week and the ability to stabilize the chart long term.

Feeder cattle settled 92 to 227 points higher. The nearby gains rebuilt triple triple digit gains following a midmorning slump through the cattle market as buyers continue to concentrate on stepping back into the market after the first of the month. The focus appears to be on moving contracts back from the sharp losses seen over the last couple of weeks helped to bring increased market support across the complex.

Feeder cattle receipts at the Joplin, MO Regional stockyards on Monday totaled 3,400 head. Compared to last week, , steer calves under 400 pounds and over 550 pounds were 3.00 to 5.00 lower, 450 to 500 pounds were steady to 3.00 higher. Heifer calves and yearlings were steady. Feeder steers medium and large 1 weighing 500 to 600 pounds traded from 155.00 to 191.00. Feeder heifers weighing 500 to 600 pounds brought 141.00 to 154.00.

Barrows and gilts in the Iowa/Minnesota direct trade closed .24 higher at 70.64 weighted average on a carcass basis, the west was up .25 at 70.60, and the national market was unchanged at 69.28. Missouri direct base carcass meat price closed 1.00 to 3.00 higher from 59.00 to 64.00. Midwest hogs on a live basis were steady to instances of 2.00 to 4.00 higher from 40.00 to 55.00.

The pork carcass cutout value was 1.19 higher FOB plant at 83.73.

Lean hogs settled 12 to 135 points higher. Firm support developed following the strength in the market late last week. There seems to be some additional interest in nearby contracts as the most significant support was seen in June and July based on the combination of cash market and pork value support expected through the next couple of weeks.

Cash hog values have a tendency to advance seasonally into late spring and early summer. The seasonal tendencies for June futures is also positive through much of May and into the early expiration period for the contract.

The hog slaughter was estimated at 432,000 head, 8,000 more than both last week and last year.