Market News

Boxed beef closes higher

The cash cattle trade is probably done for the week after Wednesday’s active trade. Several sources in the North have suggested some packer inquiry. Parts of Western and Northern Nebraska have received significant snowfall, a further barrier to more business. Whatever cattle are still on the showlists are probably priced several dollars higher than Wednesday’s market. Cattle slaughter was estimated at 114,000 head on Thursday, 15,000 more than last week, and 5,000 greater than last year.

Boxed beef cutout values were higher to sharply higher on moderate demand and light to moderate offerings on Thursday. Choice beef was up 1.66 at 196.19, select 192.83, up 2.02.

Chicago Mercantile Exchange live cattle contracts settled .05 to 1.77 higher. Sharp gains continued to hold in the front month February which pushed the contract to 123.07 at the close. The contract was the only one to hold triple digit gains, with buyer support quickly evaporating through the rest of the market. February contracts expire next week, but the volatility in the front month contract continues to spark additional market interest for the time being.

Feeder cattle settled unchanged to .37 lower, with only March up .05. The market was surprisingly unaffected by the aggressive surge in live cattle futures over the last couple of trading sessions. The overall lack of direction and recent stability in the feeder cattle market is focusing more on the lack of market shifts in deferred live cattle trade and the ability to bring additional trader volume to the complex through the next several months.

Feeder cattle receipts at the St. Joseph, Missouri Stockyards on Wednesday totaled 2,835 head. Steers weighing less than 700 pounds and over 800 pounds traded 1.00 to 6.00 higher, while 7 to 8 weight were 6.00 to 7.00 higher. Feeder heifers weighing less than 650 pounds and over 700 pounds were 2.00 to 4.00 higher, while 650 to 700 pounds heifers were 8.00 to 10.00 higher. Demand was good on the good quality cattle in the offering. Feeder steers medium and large 1 averaging 620 pounds brought 148.50 per hundredweight. 624 pound heifers traded at an average of 132.84.

Lean hogs settled .22 to 1.17 lower with April down the most. Traders continue to remain concerned about the underlying support in the pork market. April closed at 66.57 and off the session lows. Additional liquidation may be seen through the end of the week, according to DTN analysts.

Barrows and gilts in the Iowa/Minnesota direct trade were down 2.20 at 70.74 weighted average on a carcass basis, the West was also down 2.20 at 70.68, nationally the hog market was 1.54 lower at 70.85. Missouri direct base carcass meat price closed steady from 63.00 to 65.00. Illinois direct hogs were 1.00 lower from 42.00 to 51.00.

The pork carcass cutout value was up .02 at 80.26 FOB plant.

If the cash cattle market is set to make new highs moving into early spring, such bullishness could easily spillover into the hog trade, according to John Harrington at DTN.

For the week ending February 18, Iowa barrows and gilts averaged 281.3 pounds, .7 pounds heavier than last week, but 3.5 pounds lighter than 2016.

The hog slaughter was estimated at 443,000 head, 45,000 more than last week, and 55,000 greater than last year.