Market News

Cattle futures close sharply higher

There are a few bids in cattle country at 118.00 in Texas, and 190.00 to 191.00 in Nebraska, but for the most part it is quiet. The recovering board and the implication of weaker basis levels are factors working to support feedlot asking prices and country stability. Some asking prices are around 126.00 to 127.00 in the South, and 196.00 to 198.00 plus in the North.

The cattle slaughter was estimated at 108,000 head, 4,000 below last week, and 8,000 smaller than last year.

Boxed beef cutout values were steady to weak on light to moderate demand and heavy offerings. Choice beef was down .32 at 204.42, and select was down .15 at 195.50.

Chicago Mercantile Exchange live cattle contracts settled 70 to 217 points higher as sharply higher late gains developed despite very little interest seen in fundamental market shifts at the end of the week. The support was primarily based on the late and aggressive moves in the feeder market.

Feeder cattle ended the session 247 to 349 points higher based on the weaker corn market prices and follow through support through the entire cattle complex.

Feeder cattle receipts at the Springfield, Missouri livestock Marketing Center totaled 1,982 head on Wednesday. Compared to last week, steers trended steady, and heifers were steady to 3.00 lower. Holstein steers were scarce. The demand and supply was moderate. The quality of the cattle was good, with the bulk of the offering fleshy, new crop calves. Feeder steers medium and large 1 weighing 533 pounds traded at 167.15 per hundredweight. 527 pound heifers brought 146.57.

The hay auction at Dyersville, Iowa Sales Company had 1314 ton on Wednesday. The market was weak to $25.00 a ton lower. Large squares topped at 170.00 per ton, and round bales topped 120.00. Straw was steady. New crop hay is a possibility next week, depending on the weather. Many farmers have poor stands and are looking at taking a cutting of hay before rotating into another crop.

Lean hogs settled 5 to 52 points higher. The strong gains seen early in the session eased some, although buyer support remained firm. Traders focused on firm fundamental support and cover the midweek pressure seen in the complex. The overall tone of the market remains firm based expected additional support developing later in the week, which may move additional commercial buyer activity back into the complex.

Barrows and gilts in the Iowa/Minnesota direct trade closed .38 lower at 72.30 weighted average on a carcass basis, the West was down .43 at 72.17, and nationally the market was .16 higher at 71.26. Missouri direct base carcass meat price is steady from 59.00 to 65.00. Midwest hogs on a live basis are steady with an instance of 5.00 higher at Dorchester, Wisconsin from 41.00 to 60.00.

The pork carcass cutout value was up .66 at 83.12 FOB plant. Bellies were up 8.85.

Over the last six weeks, dressed hog weights have averaged 210.6 pounds, over a pound lighter than a year ago. Weights are likely in the process of easing lower.

The hog kill was estimated at 427,000 head, 26,000 greater than last week, and 4,000 more than a year ago.