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Cattle and hog futures close lower

Feedlot country was at a standstill on Tuesday afternoon with little trade expected until late in the week. Some asking prices are around 162.00 in the South and 255.00 to 260.00 in the North. The kill was estimated by USDA at 109,000 head, the same as last week, 4,000 smaller than 2014.

Boxed beef cutout values were higher on choice and steady on select on moderate demand and light to moderate offerings. Choice beef 249.61 up .94, select 245.28 down .17.

Live cattle futures ended the session 77 to 240 points lower. Spec and commercial buyers appeared to have second thoughts about Monday’s impressive surge at least momentarily, according to DTN analysts. Triple digit losses dominated most of the pit, pressured by long liquidation, profit taking, and outside markets. August was down 2.40 at 151.05, and June was 2.12 lower at 143.67.

Feeder cattle settled 137 to 225 points lower spooked impart by the defensiveness in the live pit. Traders did seem to still be serious about the significance of the 200.00 level. The question is, can it be reconfirmed as a decent trading floor, or does it threaten to become the new ceiling? March settled 1.37 lower at 202.72, and April was down 2.25 at 199.87.

Oklahoma National Stockyards on Monday had actual receipts of feeder cattle at just 1,211 head. Feeder steers and heifers were too lightly tested for a market trend. Receipts were light due to a cold front bringing ice into the state late last week into the weekend. Quality was mostly plain, with most cattle being full and fleshy. Feeder steers, medium and large 1 averaging 862 pounds averaged 188.79 per hundredweight. 770 pound heifers averaged 181.75.

Lean hog contracts settled 137 to 277 lower on the Chicago Mercantile Exchange on Tuesday. Contracts were pressured by a combination of long liquidation and profit taking. The defensiveness also seems to be related to fears that mounting pork tonnage will overwhelm seasonal demand.  The pork carcass value in the morning report was pressured by softer sales of loins and bellies. April hogs settled 2.07 lower at 60.00, and May was down 2.77 at 77.50.

There was slow to moderate hog market activity with light demand on Tuesday. Barrows and gilts in the Iowa/Minnesota direct trade closed .54 lower at 65.67 weighted average on a carcass basis, the West was down .42 at 65.64 and the East was not reported due to confidentiality. Missouri direct base carcass meat price was 1.00 lower to 1.00 higher from 57.00 to 63.00. Midwest hogs on a live basis were steady to 2.00 higher from 40.00 to 50.00.

Pork carcass cutout value 69.01 down .66 FOB plant. Loins, picnics and ribs were moderately higher, and bellies were over $3.00 lower.

Barrow and gilt carcass weights for the week ending February 14 averaged 212 pounds, one pound lighter than the previous week and a pound heavier than year-ago. Weights are expected to move sideways to slightly lower through most of March.

Tuesday’s hog slaughter was estimated at 435,000 head, 28,000 more than last week, and 31,000 greater than 2014.

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