Market News

Internet auction trends higher

The Fed Cattle Exchange Auction on Wednesday listed a total of 4,108 head for sale, with 3,526 head sold. Nebraska had the most cattle in the sale, 2,510 head. The weighted average was 120.52, up from last week’s average of 119.16. Cattle feeders are pricing cattle higher and buyers are pretty much keeping to themselves. So far no bids have been posted this week. Asking prices are around 122.00 in the South, and 192.00 to 195.00 in the North. The cattle slaughter was estimated at 115,000 head, 1,000 less than last week, but 3,000 more than last year.

Boxed beef cutout values were higher on light to moderate demand and offerings. Choice beef was up 1.60 at 193.22, and select .83 higher at 188.06.

Feeder cattle receipts at the Ozarks Regional Stockyards at West Plains, Missouri totaled 1,578 head on Tuesday, Compared to last week, steers sold 3.00 to 4.00 lower, a few spots 7,00 to 10.00 lower, Heifers were 2.00 to 3.00 lower. It was a fairly quiet day ringside as receipts were curtailed due to muddy conditions. Supply was light and demand was moderate. Feeder steers medium and large 1 averaging 782 pounds averaged 127.97 per hundredweight. 625 pound heifers brought 123.65.

Live cattle contracts on the Chicago Mercantile Exchange settled .05 to .70 higher after trading mixed near midday. At one point the front month February contract dipped below 120.00 per hundredweight but finished at 120.27. Buyer support stepped back into the market after news of higher internet sales, and renewed strength in the box trade.

Feeder cattle futures closed .07 to .52 lower as news of higher internet sales still seemed to be disappointing the overall expectations of futures traders. The pullback from firm morning gains continued to drive additional seller pressure into the complex.

Lean hogs settled .07 to 1.12 lower after shifting higher and lower through the session. The firmness seen earlier in the day evaporated as traders focused on the lack of support in cattle trade as well as pressure in pork values and cash hog prices in the morning report.

Barrows and gilts in the Iowa/Minnesota direct trade closed .39 higher AT 63.39 weighted average on a carcass basis. The West was up .63 at 63.36, and nationally the market was .01 lower at 62.37. Missouri direct base carcass meat price was steady from 54.00 to 55.00. Midwest hogs on a live basis were steady from 38.00 to 46.00.

The pork carcass cutout value was down 1.69 at 78.84 FOB plant. The loin primal was down the most.

Early hog slaughter guesses for the week seem to average a little below 2.4 million head. If in the ballpark, this figure would represent a slight decrease from last week, and a 3.5% increase from last year. In other words, chain speed seems to be confirming the bearish supply implications of the December 1 quarterly inventory.

The hog slaughter was estimated at 440,000 head, 1,000 more than last week, and 10,000 above last year.

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