Market News

Pork was lower and beef was higher on Tuesday

Cattle country was quiet on Tuesday afternoon with bids and asking prices not well defined. DTN reports they have heard of a few showlists priced around 149.00 to 150.00 in the South, and 242.00 243.00 plus in the North. The new showlists distributed on Monday are generally smaller than last week with only Kansas offering more ready steers and heifers. The cattle slaughter was estimated at 118,000 head, the same as last week, but 3,000 less than 2013.

Boxed beef cutout values are higher on moderate demand and light to moderate offerings. Choice beef is up .34 at 222.86, and select is 1.09 higher at 213.14.

Live cattle futures contracts settled 7 to 75 points lower on the Chicago Mercantile Exchange on Monday. The focus in the trade was the recent gains in corn futures as well as the market shift in the lean hog complex. Higher boxed beef values at midday gave the market a boost back from session lows. April was .07 lower at 145.27, and June settled .45 lower at 135.47.

Feeder cattle settled 15 to 77 lower. Losses developed in the feeder pit on the lack of support in live cattle futures and gains in the grain prices. Trade volume on Tuesday was very light. When corn dipped lower in most contracts and boxed beef prices were quoted as higher feeders found some support and closed at the day’s highs. April settled .77 lower at 179.22, and May was down .65 at 179.77.

Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 5714 head. Compared to last week, feeder cattle and calves were mostly steady, with instances of 1.00 higher on cattle suitable for grass. There is continuing good demand for all classes of feeders. The quality of cattle offered was plain to average. Yearling feeder steers, medium and large 1weighing 650 to 700 pounds traded from 187.50 to 198.50. Yearling heifers weighing 650 to 700 pounds brought 167.50 to 178.50.

Lean hogs settled 47 higher to 115 lower on an aggressive reversal although the trading range was likely to do very little to the market from a technical standpoint. Triple digit gains were quickly replaced by mostly moderate losses in nearby contracts as traders concentrated on weaker pork values in the morning report. May settled .17 lower at 121.50, and June was down .12 at 122.32.

Barrows and gilts in the Iowa/Minnesota direct trade closed 1.36 lower at 117.56 weighted average on a carcass basis, the West was down 1.19 at 117.36. The Eastern hog market prices were not quoted due to confidentiality. Missouri direct base carcass meat price closed 2.00 to 5.00 lower from 112.00 to 114.00. Barrows and gilts in the Midwest were steady to 2.00 lower with an instance of 2.00 to 4.00 higher from 82.00 to 96.000 on a live basis.

The pork carcass value FOB plant was 2.68 lower at 121.73 in the afternoon report. Bellies, loins and ribs were responsible for the losses.

This year’s late arrival of Easter has probably been a factor in the defensive wholesale meat trade in recent weeks. But now that retailers can see beyond Lent, buying interest should start to improve.

Hog slaughter last week totaled 2.02 million head, down 2.8% from 2013 and generally supporting the relative bearish supply implications of the March 1 Hog and Pig report.

Tuesday’s hog kill was estimated at 415,000 head, 1,000 less than last week and down 7,000 head from 2013.