Market News

Beef and pork end sharply lower

Cattle country trade was very slow on Wednesday afternoon with just a few scattered bids noted in parts of the North. A few asking prices have been reported around 132.00 to 133.00 in the South and 215.00 in the North. The Fed Cattle Exchange Internet Auction had listings of 3,963 cattle, with 1,998 head sold. The weighted average price was 131.17, down from the previous week’s average of 133.35. The cattle slaughter was estimated at 114,000 head, 2,000 below last week, but 3,000 more than last year.

Boxed beef cutout values were sharply lower on light to moderate demand and light offerings. Choice beef 216.92, down 2.65, select 210.26, down 2.76.

Chicago Mercantile Exchange live cattle futures settled .22 to .57 higher on Wednesday as light to moderate buyer support trickled into the complex despite very little movement in the cash cattle market. Commercial buyer support remained stable to firm through midweek with some end of the month buyer support likely to develop and position squaring being seen over the next couple of days.

Feeder cattle contracts settled .95 to 1.62 higher and strong upward movement was seen as buyers quickly shook off the pressure seen earlier in the week. Even though current price levels remain nearly $2.00 per hundredweight below resistance levels seen last week, the correction in the market could give traders the ability and market support to quickly step back into the market through the end of the month and early April.

The Ozarks Regional Stockyards at West plains, Missouri had 3,408 cattle on Tuesday. Compared to last week steer calves trended steady to 5.00 higher. Heifer calves and yearling steers and heifers were steady to 2.00 lower. Demand was good on a moderate supply. Feeder steers medium and large 1 averaging 616 pounds traded at 150.60 per hundredweight. 621 pound heifers brought 130.06.

Lean hogs settled .77 lower to .30 higher with only the April through June contracts higher. Mixed trade was the order of the day on Wednesday as prices wandered in a narrow range for much of the session. At this point there is little support redeveloping in long term fundamentals as supplies are growing through the summer and fall.

Barrows and gilts in the Iowa/Minnesota direct trade closed .55 lower at 62.66 weighted average on a carcass basis, the West was down .55 at 62.62, and nationally the hog market was .54 lower at 62.77. Missouri direct base carcass meat price was steady from 55.00 to 58.00. Illinois direct hogs on a live basis were 1.00 lower from 39.00 to 48.00. Sows were steady from 32.00 to 45.00.

The pork carcass cutout value was down 1.39 at 76.22 FOB plant.

Given the persistence of decent pork packing margins, there is plenty of incentive to run large slaughter schedules as long as hogs remain available.

The hog slaughter was estimated at 442,000 head, 1,000 more than last week, and 6,000 greater than last year.