Market News

Cattle trade waits until Friday

The cash cattle trade was not established on Thursday afternoon with bids and asking prices poorly defined. Private sources did report a few bids in Kansas at 157.00 live, and Iowa and Nebraska at 250.00 to 257.00 on a dressed basis. Firmed by sharply higher futures, asking prices are around 162.00 plus in the South, and 260.00 plus in the North. The kill totaled 108,000 head, 1,000 below last week, and 11,000 smaller than a year ago.

Boxed beef cutout values were steady to firm on light to moderate demand and offerings. Choice beef was .54 higher at 247.03, and select was down .03 at 244.90.

Chicago Mercantile Exchange live cattle contracts settled 185 to 295 points higher. The February  contract at one point was 4.00 higher but that was misleading as front month contracts near expiration have no daily trading limits in place. The ability to hold current market support could help to instill long term buyer support through the remainder of the spring months as more focus on demand growth will develop. February settled off the day’s highs at 161.12 up 2.77, and April was up 2.95 at 149.80.

Feeder cattle ended the session 320 to 360 points higher. Follow through buying was evident in feeder cattle futures. The focus was on the strong gains in the live pit. The ability to hold the strong buyer support through the end of the session could help to redevelop long term buyer interest back into the market. March settled 2.32 higher at 200.30, and April was up 3.20 at 199.05.

Feeder cattle receipts at the Huss Platte Valley Auction in Nebraska totaled 3178 feeder cattle on Wednesday. Compared to last week, steers under 700 pounds sold steady to 10.00 higher and those over 700 pounds sold 5.00 lower. The heifers weighing less than 650 pounds were steady to 10.00 higher and those over 650 pounds were 5.00 lower. Demand was good from beginning to end from a good size crowd of buyers. Feeder steers averaging 779 pounds brought 208.95 per hundredweight. 772 pound replacement heifers traded at 202.50.

Lean hogs settled 40 to 260 points lower as futures quickly turned lower early in the session on the inability to draw buyer support back into the market. The triple digit losses through the summer contracts on the fear that recent aggressive buyer support may create some late month pressure as traders square positions. It is unclear how much long term damage will develop across the complex over the next few trading sessions. April settled 2.17 lower at 67.15 and May was down 2.60 at 79.30.

Barrows and gilts in the Iowa/Minnesota direct trade closed .44 higher at 66.48 weighted average on a carcass basis, the West was up .25 at 66.24, and the East was not reported due to confidentiality. Missouri direct base carcass meat price was 2.00 to 3.00 higher from 54.00 to 63.00. Midwest hogs on a live basis closed steady to an instance of 3.00 higher from 36.00 to 43.00.

The pork carcass cutout value was 1.34 lower FOB plant at 68.13, bellies were down the most.

For the week ending Feb. 21, Iowa barrows and gilts averaged 284.6 pounds, 1.2 pounds lighter than the previous week and only 2.4 pounds heavier than 2014. Perhaps aggressive marketing and/or extreme winter cold are working to limit late winter tonnage.

Thursday’s hog kill was estimated by USDA at 423,000 head, 8,000 less than last week, but 2,000 greater than last year.

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