Market News

Livestock futures end higher

The cash cattle trade remained at a standstill on Tuesday afternoon with bids and asking prices poorly defined. A few bids were reported in Nebraska at about steady with last week. Asking prices will no doubt be higher now that futures reversed to a sharply higher close. With the basis historically weak, feed lot resolve should remain rather strong. The kill was estimated at 108,000 head, 2,000 smaller than last week, and 4,000 less than last year.

Boxed beef cutout values were lower to sharply lower on light demand and offerings. Choice beef was down 1.84 at 203.81, and select was 2.17 lower at 192.69.

Live and feeder cattle futures contracts on the Chicago Mercantile Exchange spent much of the session sharply lower with triple digit losses evident in both markets. The bearishness seemed to be tied to long liquidation, technical selling and uncertain beef demand. Near midday both markets staged a dramatic turnaround and closed significantly higher. Apparently there is still some bullish expectations on the table regarding late year beef demand. Live cattle settled 37 to 227 points higher, and feeder cattle were up 165 to 232 points.

Feeder cattle receipts at the Joplin, Missouri Regional Stockyards totaled 2950 head on Monday. Compared to last week, steer calves traded steady to 5.00 lower, heifer calves and yearlings were 5.00 to 8.00 lower. Demand was moderate to light on a light supply. The wet weather across the central U.S. has curtailed feeder cattle demand as backgrounders and feedlots are dealing with either ice or mud Feeder cattle contracts on Monday were sharply lower. Feeder steers medium and large 1 averaging 524 pounds brought 195.87 per hundredweight. 661 pound heifers traded at an average of 162.19.

At the Rock Valley, Iowa hay auction receipts totaled 53 loads. It was a generally steady market. Prices are dollars per ton. All sales FOB Rock Valley Iowa vicinity. Large squares and rounds of premium alfalfa brought 170.00 to 175.00 a ton. Large rounds of premium grass sold for 120.00 to 130.00 a ton.

Lean hog contracts settled higher on Tuesday as they ignored the early bearishness in the cattle complex. Most contracts saw triple digit gains. The bullish focus in the hogs was helped by evidence supporting a seasonal upturn, both in terms of country receipts and improving pork demand. December settled 1.52 higher at 59.95, and February was up 2.97 at 59.77.

Barrows and gilts in the Iowa/Minnesota direct trade closed .42 higher at 52.70 weighted average on a carcass basis, the West was up .45 at 52.65, and nationally the market was .32 higher at 51.65.

It may be too early to assume that hog and pork fundamentals are turning on a dime, ready to consistently support recovering prices through the end of the year.

The pork carcass cutout value was down .89 at 73.01 FOB plant.

The Tuesday hog slaughter was estimated at 438,000 head, the same as last week, but 11,000 greater than last year.