Market News

Some packers called it a day

The cattle trade was slow in developing on Friday afternoon with just a few sales reported in Nebraska at 210.00 dressed, $2. 00 higher than last week’s weighted average. DTN reported they had heard that some packers are not even in the market this week and had called it a day. Asking prices remained firm around 132.00 plus in in the South and 212.00 plus in the North. The weekly slaughter was estimated at 613,000 head, 25,000 more than last week, and 75,000 greater than last year.

Boxed beef cutout values were steady to weak on light to moderate demand and moderate offerings. Choice beef was down .65 at 221.62, and select 215.55, down .22.

The cattle on feed report released Friday afternoon looks generally neutral compared to trade expectations. On feed 100%, February placements 99%, and marketing’s in February 104%.

Chicago Mercantile Exchange live cattle contracts settled .32 higher to .50 lower with only the April and June contracts higher. The trading range was narrow on Friday as most commercial and investment traders remained on the sidelines through the end of the week. The market was focused on the release of the cattle on feed numbers and direction of the cash trade.

Feeder cattle ended the session .17 to .35 lower as traders looked for additional direction from both the cash cattle trade and the cattle on feed report released after the close of trade. Trading was light and in a narrow trading range.

Feeder cattle receipts at Missouri auctions this week totaled 33,775 head. Compared to last week, feeder steers and heifers sold steady to 5.00 higher, with some spots of 10.00 higher. The supply of feeders this week was moderate although locally some barns did see heavy supplies. The demand remains good to very good. Feeder steers medium and large 1 averaging 675 pounds brought 145.28 per hundredweight. Feeder heifers weighing 672 pounds averaged 130.77.

Lean hogs settled.47 to 2.07 lower with the triple digit losses in the April through August contracts as traders continued to adjust to the wild price shifts seen over the last week. The strong gains seen on Thursday were eliminated with additional downside market pressure across the complex. The one day spike in price levels seen on Thursday brought more volatility into the market than anything else with the overall tone of the market still weak.

The pork carcass cutout value was up .99 at 78.48 FOB plant. All cuts were higher.

Barrows and gilts in the Iowa/Minnesota direct trade closed .98 lower at 64.37 weighted average on a carcass basis, the West was down 1.00 at 64.39, and nationally the market was .65 lower at 64,38. Missouri direct base carcass meat price was steady from 68.00 to 72.00.

Feeder pig receipts nationally were 112,127 head, significantly more than the previous week and last year. Early weaned pigs were 1.00 per head lower. All feeder pigs were steady to weak. The demand was moderate for moderate offerings. Early weaned pigs’ 10 to 12 pounds basis ranged from 34.00 to 53.00. 40 pound pigs 73.00 to 78.50. Prices quoted are on a per head basis delivered to the buyer’s farm, and include freight and fees on a per head basis.

The weekly hog slaughter was estimated at 2,313,000 head, 22,000 less than last week, but 157,000 more than last year.