Market News

Cattle trade steady to higher

USDA Mandatory reported negotiated cash cattle trade and demand was moderate on Friday in the Southern Plains. Live sales were steady at 120.00, with some sales in Kansas reported to be 1.00 lower at 119.00 Trade and demand was moderate in Nebraska, with live sales steady to 1.00 higher at 120.00, and dressed sales steady at 190.00. Trading was light in Iowa on moderate demand. Compared to last week live sales were 1.00 to 2.00 higher at 119.00 to 120.00, while dressed sales were steady at 190.00. The weekly cattle kill was estimated at 572,000 head, 5,000 smaller than last week, but 47,000 more than 2016.

Boxed beef cutout values were higher on moderate demand and moderate to heavy offerings. Choice beef was up 1.27 at 190.49, and select was 1.05 higher at 189.24.

Chicago Mercantile Exchange live cattle futures contracts closed .45 to 1.40 higher. The market focused on strong commercial buyer activity moving back into the market. The building support seen in the complex continues to focus on uncertain fundamental support, but active commercial support based on the potential for follow through buying interest next week, according to DTN analysts.

Feeder cattle futures closed .25 to 77 higher bouncing higher following the strong support in live cattle futures as well as a steady cash cattle trade which helped to build some needed stability into the market following the price shifts seen through the week.

Feeder cattle receipts at Missouri Auctions this week totaled 38,344 head. Compared to last week, feeder steers and heifers sold unevenly steady. The supply of feeders was moderate to heavy. Several of the Northern barns that are currently on an every other week schedule had sales this week, and many did call markets higher on lighter weights, but that was compared to two weeks ago and much of that gain in the market in actuality really occurred last week. Feeder steers medium and large 1 averaging 670 pounds brought 140.23 per hundredweight. 671 pound heifers averaged 124.46.

Lean hogs settled .25 to 1.00 higher. Firm support was evident through nearby and most deferred lean hog futures following firmness in pork values and spillover support present in the live cattle market. Sharp loses seen on Thursday were retracted more based on additional trade volume rather than any shift in overall fundamental market direction.

Barrows and gilts in the Iowa/Minnesota direct trade closed .28 lower at 74.05 weighted average on a carcass basis, the West was down .32 at 74.00, and nationally the market was .34 lower at 72.95. Missouri direct base carcass meat price was steady from 62.00 to 64.00. Illinois direct was steady from 42.00 to 52.00 live.

The pork carcass cutout value was up .23 at 84.65 FOB plant. Only the loin primal was lower.

Feeder pig receipts nationally this week totaled 95,355 head. Compared to last week, early weaned pigs traded steady to weak. All feeder pigs were steady. Demand was moderate for moderate offerings. Prices quoted are on a per head basis. Early weaned pigs, 10 to 12 pound basis 42.00 to 58.00. 40 pound basis pigs 70.00 to 75.00. Prices are quoted on a per head basis delivered to the buyer’s farm and includes freight and fees on a farm to farm basis.

The weekly hog slaughter was estimated at 2,363,000 head, 1,000 less than last week, and up 75,000 from last year.