Market News

Livestock futures closed mixed

The cattle market is not tested on Tuesday with only a few bids evident in the South at 132.00. While packers seem to be short bought because of last week’s limited trade, it remains to be seen whether significant business will develop earlier than Friday. Some showlists have been priced around 138.00 in the South and 215.00 in the North. The kill was estimated by USDA at 109,000 head, 32,000 more than last week, but 1,000 head less than last year.

Boxed beef cutouts were lower to sharply lower on light demand and offerings. Choice beef 218.03 down .78, choice 2.98 lower at 213.60.

Live cattle contracts on the Chicago Mercantile Exchange settled mixed from 10 higher to 165 lower with spot February down the most. Except for the spot month the rest of the contracts remained mostly steady to moderately higher, although the inability to hold onto early market support created some underlying market concerns about the ability to sustain buyer support in the complex.

Feeder cattle ended the session 55 points higher to 70 lower. With the exception of the front month contract the nearby contracts were able to hold on to moderate gains, but the inability to maintain the support seen early in the session created some underlying concerns in the complex, as traders focused on the ability to draw additional interest back into the market.

Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 6200 head. Compared to last week, feeder steers and heifers were 2.00 to 5.00 lower. The demand for feeder cattle was moderate to good despite sharply lower cattle futures for the past two trading sessions. Steer and heifer calves were steady to 2.00 higher. The demand for stocker cattle was very good as many are looking ahead to spring and green pastures. Feeder steers medium and large 1 averaging 722 pounds traded at 156.11 per hundredweight. 719 pound heifers brought 141.25.

Lean hogs settled mostly 10 to 52 points lower, with only July and August posting moderate gains. The lack of overall movement kept the lean hog futures market in a choppy but firming pattern over the last couple of months as very little market volatility has developed through the complex over the last couple of weeks. The focus on firming market fundamentals is helping to draw additional buyer support back into the complex.

Barrows and gilts in the Iowa/Minnesota direct trade closed .23 higher at 63.08 on a weighted average on a carcass basis. The West was up .53 at 62.88, and nationally the hog market was 62.16, up .83. Missouri direct base carcass meat price closed steady from 51.00 to 57.00. Midwest hogs on a live basis closed steady from 37.00 to 46.00.

The pork carcass cutout value closed .21 higher at 77.17 FOB plant. Ribs were $3.02 higher, other cuts were firm to lower.

This week’s hog kill should be somewhat larger than last week as producers push a bit more to catch up from weather-delayed marketing’s. Specifically, the weekly slaughter is expected to be close to 2.23 million head, roughly 1% to 2% larger than 2015.

The Tuesday hog slaughter was estimated at 422,000 head, 117,000 more than last week’s light storm related slaughter, and 9,000 less than last year.