Market News

Cattle trade $2.00 higher

Light cattle trade started to develop by midafternoon on Friday in parts of the South, generally 2.00 higher than last week at 126.00 live. Many feedlots continued to price cattle at 127.00 or better, some steers and heifers in parts of Nebraska and Iowa have been marked at 196.00, 2.00 higher than last week. Northern showlists are priced at 200.00. The weekly cattle slaughter is estimated at 590,000 head, the same as last week, but 24,000 less than 2015.

Boxed beef cutout values were weak to lower on light to moderate demand and heavy offerings. Choice beef was down .68 at 203.74, and select was 1.18 lower at 194.32.

Live cattle contracts on the Chicago Mercantile exchange closed 15 to 110 points higher. The bulk of the late week buying interest was clearly focused on the spot June. The lead month June pushed over 120.00 for the first time since April powered by bull spreading, pre cash profit taking, and technical buying.

Feeder cattle contracts settled 15 to 70 points higher with only the May contract lower. Feeders opened impressively along with their live counterparts, but soon turned mixed. The uneven action seemed linked to profit taking, concerns about the corn market, and the ultimate success of live futures.

Feeder cattle receipts at Missouri auctions this week totaled 25,411 head. Compared to last week, feeders sold steady to 5.00 lower except for calves from 450 to 550 pounds that sold unevenly steady to 3.00 higher. Most auctions had light to moderate offerings as runs have really shifted to more summer like volumes. Feeder steers medium and large 1 averaging 624 pounds averaged 157.08 per hundredweight. 681 pound heifers traded at 139.27.

Lean hogs settled mixed with only the far deferred contracts higher. The market was lower due to week long liquidation and profit taking. Selling interest seemed to increase especially in the June contract when the noon car lot dropped with surprising news. The carcass value was shockingly soft, due to the 23.81 implosion of the belly primal.

Barrows and gilts in the Iowa/Minnesota direct trade closed .65 higher at 72.95 weighted average on a carcass basis, the west was up .25 at 72.41, and nationally the market was up 28 at 71.27. Missouri direct base carcass meat price closed steady from 59.00 to 65.00. Midwest hogs on alive basis were steady to 2.00 higher from 43.00 to 60.00.

The pork carcass cutout value was down 1.47 at 81.65 FOB plant. Bellies were down over 8.00.

Feeder pig receipts nationally this week totaled 77,218 head. Early weaned pigs and all feeder pigs were 1.00 per head lower. The demand was moderate for moderate offerings. Early weaned pigs on a 10 to 12 pound basis ranged from 31.00 to 43.00 per head. 40 pound pigs brought 65.00 to 83.00 per head.

The weekly hog slaughter was estimated at 2,214,000 head, 175,000 more than last week and 103,000 greater than last year.