Market News

Cattle trade at sharply lower prices

A light to moderate cattle trade developed on Wednesday afternoon in several areas. Most of the live sales in the North are marked at 122.00, $9.00 lower than last week’s weighted average basis Nebraska. Activity in the South ranged from 122.00 to 123.00, $8.00 to 9.00 lower than last week. Feedlot resolve seemed to weaken after futures were unable to hold an early rally. The slaughter was estimated at 118,000 head, 2,000 more than last week and 6,000 more than last year.

Boxed beef cutout values closed lower on light to moderate demand and moderate offerings. Choice beef was down 1.57 at 245.42, select 218.90 down .98.

Live cattle contracts on the Chicago Mercantile Exchange settled .15 to .85 lower after light to moderate gains earlier in the session. Prices moved back and forth on either side of unchanged for much of the Wednesday session. Trade volume was described as light.

Feeder cattle futures ended .30 to 1.15 higher as firm support held across the complex. Even though traders backed away from some triple digit gains seen early in the session, the move continued to be based on short covering activity and the expectation additional commercial interest might develop through the rest of the complex. Volume remained light through the close.

Feeder cattle receipts at the Ozarks Regional Stockyards at West Plains, Missouri totaled 4081 head. Feeder calves traded 3.00 to 9.00 lower with the exception of 6 weight steers trading steady. Yearling heifers were steady to 3.00 higher, while yearling steers were lightly tested with lower undertones. Demand was light early but improved throughout the day with many top prices established in the afternoon. Feeder steers medium and large 1 averaging 621 pounds brought 158.35 per hundredweight. 631 pound heifers averaged 137.67.

Lean hogs settled 1.07 higher to .25 lower with July through August higher and July up the most as traders remained focused on nearby summer contracts with increased buyer activity moving into the July contracts. This pushed the front month contract to over 86.00 with traders focusing on additional fundamental support through the month of June.

Barrows and gilts in the Iowa/Minnesota direct trade closed .23 lower at 87.26 weighted average on a carcass basis, the West was down .13 at 87.29, and nationally hogs were .07 higher at 86.83. Missouri direct base carcass meat price was steady to 4.00 higher from 78.00 to 81.00. Illinois direct trade on a live basis were 1.00 higher from 54.00 to 62, sows 3.00 higher from 48.00 to 53.00.

The pork carcass cutout value continued its climb higher to 99.97, up 1.67 FOB plant. Bellies and loins up the most.

Although market numbers are currently tightening along with the season, the untenable fact remains there are lots of hogs out there. April through June will be the third consecutive quarter with record slaughter. The odds are good that hog slaughter during the next two quarters will also be record high.

The Wednesday hog slaughter was estimated at 431,000 head, 2,000 less than last week, but 10,000 more than last year.