Market News

Livestock futures close sharply higher

The cash cattle market was at a standstill on Tuesday with just a few bids evident in the South from 110.00 to 112.00. Country psychology got a shot in the arm thanks to sharply higher cattle futures. If the board continues to move toward cash premiums, feedlot resolve to hold for higher prices should be strengthened. The Tuesday kill totaled 116,000 head, even with last week, but 4,000 greater than last year.

The boxed beef cutout values were lower on choice, and steady on select on light to moderate demand and light offerings. Choice beef was .88 lower at 190.51, select was unchanged at 173.23.

Chicago Mercantile Exchange live cattle contracts settled 1.15 to 20.07 higher after they were stuck in the same old gear of indecision. But buying energy suddenly took hold, no doubt boosted by some extent by the spurring bullishness in the lean hog trade. There was aggressive short covering and spillover by from the lean hog complex.

Like their live counterparts, feeder issues got off to a sluggish start but closed 2.10 to 2.52 higher. The bulls’ rallied at midday, responding both to outside markets and substantial premiums of the cash index.

The Sioux Falls regional Stockyards at Worthing, South Dakota had receipts of 4052 head on Monday. Compared to last week, steer calves 500 to 550 pounds were steady to 5.00 lower, 550 to 600 pounds sharply lower, 6 to 650 pounds 5.00 to 10.00 lower, 650 to 700 pounds 3.00 to 5.00 lower Yearling steers 3.00 to 400 lower Heifer calves steady to mostly 5.00 lower. Yearling heifers steady to 2.00 higher. Demand was good for a large offering of calves Good to very good demand for yearlings. Feeder steers medium and large 1 averaging 724 pounds brought 131.34 per hundredweight. 712 pound heifers brought 124.38.

Lean hog contracts settled .40 to 2.67 higher on spot cash news, confidently anticipating tighter supplies and decent demand over the next several quarters. Most contracts scored multi month highs, generating more attractive technical signs in the process.

Barrows and gilts in the Iowa/Minnesota direct trade closed 2.37 higher at 50.20 weighted average on a carcass basis, the West was up 2.33 at 50.21, and nationally the market was 1.99 higher at 49.52. Missouri direct base carcass meat price closed steady to 1.00 higher from 38.00 to 40.00. Midwest hogs on a live basis are steady to 2.00 lower from 27.00 to 34.00.

The pork carcass cutout value was up .45 at 74.51 FOB plant

Monday’s hog kill was dead even with last week’s record pace at 443,000 head, 2,0000 more than last year. We are far from out of the supply woods. Any substantial downsizing in the week’s slaughter probably won’t surface until Saturday.

The hog slaughter was estimated by USDA at 438,000 head, 4,000 less than last week, and down 1,000 from last year.