Market News

Cattle futures close higher

Bids and asking prices in cattle country are very difficult to find on Tuesday. Again a few Southern showlists have been priced around 132.00 to 133.00. In somewhat of a surprise USDA Mandatory identified several thousand head of cattle trading in Iowa from 123.00 to 125.00 on Monday. The kill totaled 115,000 head, 1,000 less than last week, but 3,000 more than a year ago.

Boxed beef cutout values were weak on light to moderate demand and offerings. Choice beef was down .34 at 219.57, and select 213.02, down .60.

Chicago Mercantile Exchange live cattle contracts settled .15 to .47 higher with only the April contract lower by .30. Support came from short covering and profit taking following Monday’s crash. Tall country premiums should continue to cause aggressive bears to think twice, according to DTN analysts.

Feeder cattle settled unchanged to .62 higher with only April lower by .15. Trade volume was very light with most traders focusing on potential developments in the live market.

Feeder cattle receipts at the Joplin, Missouri Regional Stockyards on Monday totaled 4,799 head. Compared to last week steer calves were steady to 5.00 lower, heifer calves steady to 5.00 higher, yearlings steady to 2.00 higher. The demand was moderate to good, the supply was moderate to light. A higher percentage of un-weaned fall calves in the offering. Much needed rain fell across the trade area with more in the forecast. Feeder steers medium and large 1 weighing 825 pounds averaged 129.24. 677 pound heifers brought 130.60 per hundredweight.

Lean hogs settled .55 to 1.07 lower. Pressure was tied to spillover selling from yesterday’s implosion and nervousness regarding the ability of wholesale demand to handle the high tide of early spring production and tonnage.

Barrows and gilts in the Iowa/Minnesota direct trade closed .62 lower at 63.21 weighted average on a carcass basis, the West was down .60 at 63.17, and nationally the market was .39 lower at 63.31. Missouri direct base carcass meat price was steady to 3.00 lower from 55.00 to 58.00. Midwest hogs on a live basis closed steady to 1.00 lower from 40.00 to 48.00.

The pork carcass cutout value is down 1.51 at 77.61 FOB plant.

The USDA will release the March 1 Hogs and Pigs inventory on Thursday, and it will probably confirm record large numbers in every category of the report. The total inventory could be up 5% or more and the winter pig crop will likely be 4% larger, according to DTN.

The Tuesday hog slaughter was estimated at 445,000 head, 1,000 more than last week, and 11,000 greater than last year.