Market News

A quiet day in markets

Cattle country was mostly quiet on Friday afternoon, there were signs in the North of late week buying interest. There were bids in Nebraska and Iowa of 259.00, and some cattle were sold in Iowa at 164.00 live. The bids and sales were tied to one regional packer not afraid to work at the top end of Wednesday’s price range. Yet for the most part, business was competed for the week.

No slaughter data for cattle or hogs is available due to the Federal holiday.

Boxed beef cutout values closed firm to higher on light to moderate demand and offerings. Choice beef was up .58 at 244.52, and select was 2.42 higher at 235.61.

Chicago Mercantile Exchange live cattle contracts settled 47 to 250 points higher on Friday, after moderate pressure early in the session. The market turned higher on significantly higher boxed beef values in the midday report. Sharply higher cattle prices on Wednesday were also supportive to the live cattle complex. Trade volume remained light as traders seemed to have most of the needed positions already in the books before the holidays. December was up 2.25 at 164.75, and February was up 1.90 at 162.47.

Feeder cattle futures ended 52 to 105 points lower. Feeder contracts reached the daily trading limit of $4.50 lower Friday morning. The market closed well off the day’s lows on support from the higher cash market, higher live contracts and improved boxed beef values. January settled 1.02 lower at 21.75, and March was down .82 at 211.90.

Lean hogs settled 25 to 112 points higher after early pressure was seen in the nearby contracts. The market was lightly traded. Traders remained cautious that longer term pressure will develop through not only the next week, but well into 2015. February settled 1.12 higher at 81.55, and April was up .52 at 84.20.

Barrows and gilts in the Iowa/Minnesota direct trade closed .16 higher at 75.49 weighted average on a carcass basis, the West was up .07 at 75.38, and the east was not reported due to confidentiality. Missouri direct base carcass meat price was 2.00 lower with light interest at 71.00.

Even if next spring’s hog slaughter turned out to be 5%-6% above 2014 as the December 1 report seems to imply it will still remain 5%-6% smaller than 2013.

The pork carcass cutout value was up .26 FOB plant at 87.65 with only bellies and picnics higher.

Ham prices collapsed Wednesday into the upper $60 area. Additional weakness is expected to carry-over into next week before interest regarding Easter hams begins to pick up in early January, supporting higher prices.