Market News

Cattle futures close higher

There was very little action in feedlot country on Wednesday with some scattered bids of 134.00 live and 206.00 dressed noted in most areas. Some feedlot managers have priced cattle around 138.00 plus in the South and 215.00 in the North.

Boxed beef cutout values were near steady in the afternoon report on light to moderate demand and offerings. Choice beef was up .16 at 218.19, and select was .02 higher at 213.62.

USDA estimated the cattle slaughter at 105,000 head, 12,000 more than last week, and 7,000 greater than 2015.

Chicago Mercantile Exchange live cattle contracts settled 65 to 130 points higher. Early gains continued to hold through the close despite the concern in the market that early morning buyer support would not be maintained. The question remains if prices will be able to move out of the current market range over the near future. Short covering and the premium status of recent country sales were market features.

Feeder cattle ended the session sharply higher from 95 to 222 points. The inability to hold buyers in the market has been seen through the last couple of trading sessions. Contracts did close off the highs of the day, and the wide intraday price swings have created quite the momentum through the week.

St. Joseph, Missouri Stockyards sale today had receipts of 3800 cattle. Compared to two weeks ago, steer and heifer calves under 600 pounds opened near steady, over 600 pounds steady to weak. Feeder steers medium and large 1 weighing 550 to 600 pounds traded from 183.50 to 196.00 per hundredweight. 550 to 6 weight heifers brought 161.00 to 163.00

Lean hog contracts settled 52 to 127 points lower with only the soon to expire February higher. Moderate to strong pressure developed as traders were concerned about a moderate pullback in the deferred contracts. The market traded under pressure with weakness in cash markets, and the inability to move out of the recent sideways pattern seemed to get most traders bored of hanging on for the time being, according to DTN analysts.

Barrows and gilts in the Iowa/Minnesota direct trade closed .15 higher at 63.15 weighted average on a carcass basis, the West was up .47 at 62.82, and there was no price comparison in the East at 61.66. Missouri direct base carcass meat price was steady 51.00 to 57.00. Midwest hogs on a live basis closed fully steady from 37.00 to 48.00.

The pork carcass cutout value was down .12 at 77.05 FOB plant. Only the butt and loin primal were higher.

The USDA’s increase of ending corn stocks in its February supply and demand report represents more weight on the back of the feed market. Such news can only encourage further livestock and meat expansion.

Wednesday’s hog slaughter was estimated at 437,000 head, up 35,000 from last week and 6,000 greater than last year.