Market News

Cattle trade done for the week

The feedlot trade was quiet on Friday afternoon with business completed for the week. USDA Mandatory reported cattle trading was moderate in Kansas and light in the Texas Panhandle on Thursday on light to moderate demand. Live sales were 1.00 lower than last week at 133.00. Trading and demand was light to moderate in Nebraska and Iowa. Live sales in Central Nebraska traded at 132.00, with dressed sales 4.00 lower than last week at 206.00. In Iowa live sales were 1.00 to 2.00 lower at 130.00, dressed sales were 4.00 lower at 206.00.

Boxed beef cutout values closed lower on light to moderate demand and offerings. Choice beef was down .94 at 216.06, select 1.74 lower at 212.53.

The weekly cattle slaughter was estimated at 544,000 heard, 10,000 more than last week, and 4,000 greater than 2015.

Live cattle contracts on the Chicago Mercantile Exchange settled 17 to 70 points in the red. Follow-through pressure developed as early buyer support quickly eroded on Friday morning. The concern that the pressure in the cash markets will continue to add pressure through the rest of the month despite tightening beef supplies created additional underlying concerns in the nearby and deferred contracts.

Feeder cattle ended the session unchanged to 65 points lower. The inability to hold early market support through the feeder contracts sparked additional pressure in the summer contracts, but ended off the day’s lows. The lack of support in cash markets as well as lackluster interest in live cattle markets has limited buyer interest across the entire feeder market.

Feeder cattle receipts at Missouri auctions totaled 27,546 head. Compared to last week, feeder steers sold steady to 5.00 lower, although there were some instances of 5.00 to 10.00 lower were noted especially on fleshy and/or un-weaned calves. Feeder heifers sold mostly steady although quality heifers suitable to return to the farm were firm to 2.00 higher. 1556 head of feeder steers averaging 672 pounds traded at 166.70 per hundredweight. 446 heifers weighing 669 brought 148.97.

Lean hogs settled from 92 points higher to 20 lower. Light trade volume at the end of the week limited overall direction through the entire lean complex. February through July contracts were able to hold moderate gains, firming buyer interest at the end of the week.

Barrows and gilts in the Iowa/Minnesota direct trade closed .02 lower at 63.61 weighted average on a carcass basis, the West was down .04 at 63.58, and National the market was .65 lower at 62.31. Missouri direct base carcass meat price was steady from 51.00 to 57.00.

The pork carcass cutout value was up .56 at 76.08 FOB plant.

The feeder pig market this week was mostly steady on light receipts. Demand was moderate for moderate offerings. Early weaned pigs, 10 to 12 pound basis averaged 62.26 per hundredweight. 40 pound pigs at 74.48.

The weekly hog kill was estimated by USDA at 2,281,000 head, 105,000 more than last week, and 52,000 greater than last year.