Market News

Sluggish livestock futures trade

Cattle country was quiet on Monday afternoon as packers completed their rounds collecting the new showlists. The pre-Christmas offering appears to be generally larger than last week, especially in the South. A few asking prices have been voiced around 162.00 in the South and 255.00 in the North. Both sides would like to complete marketing chores by Wednesday afternoon. The kill was estimated at 115,000 head, 3,000 more than last week, but 6,000 less than last year.

Boxed beef cutout values were steady to firm on light to moderate demand and light offerings. Choice boxed beef was up .79 at 239.96, and select was up .34 at 230.22.

Live cattle contracts settled 27 to 110 points higher. The moderate gains in the nearby contracts were evident as traders tried to focus on further support later in the week. Main features of the market were short covering and pre-holiday profit taking. December settled 1.10 higher at 161.85, and February was up .72 at 160.82.

Feeder cattle ended the session 35 to 127 points higher as light support held, although initial gains eased some by midday. The focus on the trade through the holidays is being is being offset by continued short covering after last week. January settled .35 higher at 220.50, and March was up 1.00 at 218.97.

Feeder cattle receipts at the Lexington, Nebraska Livestock market totaled 2214 head on Friday. Compared to the previous week steers over 500 pounds sold steady to 10.00 lower and heifers were unevenly steady to 7.00 lower. Demand was good from beginning to end of the sale. 377 feeder steers medium and large 1 weighing 780 pounds averaged 227.79 per hundredweight. 114 heifers weighing 705 brought 220.50.

Lean hogs settled 65 to 230 points lower. Losses in the complex expanded through the session as nearby contracts held triple digit pressure following additional softness in cash markets and the lack of underlying support in the pork values. February settled 1.65 lower at 89.25 and April was down .65 at 82.55.

Barrows and gilts in the Iowa/Minnesota direct trade closed 3.52 lower at 73.96 on a carcass basis, the West was down 2.70 at 74.33, and the East was not reported due to confidentiality. Missouri direct base carcass meat price was steady at 73.00. Midwest hogs on a live basis were lightly tested with most interests out of the market. Prices were steady with a top of 60.00.

The pork carcass cutout value was .69 higher FOB plant at 87.52. Only the picnic primal was lower.

USDA’s December hogs and pigs report will come out on Tuesday. Trade forecasts have the breeding herd up 3.0% and the market hog inventory up 1.3%.

Monday’s hog slaughter was estimated at 435,000 head, 3,000 more than last week, but 5,000 less than last year.