Market News

A stare down in feedlot country

Cattle buyers and sellers continued to stare at each other on Friday afternoon with neither side willing to step toward the middle Bids ranged from 122.00 to 124.00 live, and 196.00 to 200.00 on a dressed basis. Asking prices remained at around 128.00 plus in the South, and 205.00 plus in the North. The weekly kill was estimated at 573,000 head, 20,000 less than last week, but 37,000 more than last year.

Boxed beef cutout values were weak on choice and sharply lower on select on light to moderate demand and moderate to heavy offerings. Choice beef was down .68 at 207.22, select 2.79 lower at 197.49.

Chicago Mercantile Exchange live cattle contracts settled 1.07 to 167 higher as strong market buyer activity steadily moved in to the live cattle futures even though cash cattle support was untested during the session. Front month April made a run back over 120.00 per hundredweight. A close above 120.00 at the end of the week should be a significant shot in the arm in the weekly chart, creating some much needed bullish momentum.

Feeder cattle contracts ended the day 1.70 to 2.12 higher as strong end of the weak support redeveloped in the complex. The most recent support has pushed front month futures above 1.30 per hundredweight as traders continued to look for additional underlying support during early April in an attempt to find additional interest in the live cattle market.

Feeder cattle receipts at Missouri auctions this week totaled 24,911 head. Compared to last week, steers and heifers traded steady to 5.00 lower. There were a couple of auctions in the northern part of that state that trended higher, but they have had a couple of weeks off and seem to be catching up to where the rest of the state gained two to three weeks ago. The demand was good on a moderate supply. Feeder steers medium and large 1 averaging 719 pounds brought 138.96 per hundredweight. 715 pound heifers averaged 124.99.

Lean hogs settled .55 higher to .92 lower with all 2017 contracts down. The softness in the 2017 contracts countered the triple digit gains that developed Thursday and left traders in a position where they desired to cover positions before the weekend.

Barrows and gilts in the Iowa/Minnesota direct trade closed .99 lower at 58.74 weighted average on a carcass basis, the West was down 1.22 at 58.53, and nationally the hog market was .88 lower at 58.77. Missouri direct base carcass meat price was steady from 51.00 to 55.00. Illinois direct trade on a live basis was steady from 38.00 to 45.00. Sows steady from 32.00 to 42.00.

The pork carcass cutout value was up 1.17 at 75.28 FOB plant. All cuts except hams were higher.

Feeder pig receipts nationally last week totaled 90,848 head. Early weaned pigs 5.00 per head lower. All feeder pigs 2.00 per head lower. Demand was light to moderate for moderate offerings. Early weaned pigs on a 10 to 12 pound basis 25.00 50 to 42.00. 40 pound pigs 55.00 to 70.00. Prices on a per head basis include freight and fees on a farm to farm basis.

The weekly hog kill was estimated at 2,306,000 head, 37,000 less than last week, but 147,000 more than last year.