Market News

Just a few bids on the cattle

Feedlot country was at a standstill on Thursday afternoon with only a few starter bids evident in Kansas at 157.00 live, Nebraska from 250.00 to 254.00, and Iowa at 254.00. Bids are well below the asking prices of 162.00 plus in the South and 255.00 to 260.00 in the North. Significant business appears to be delayed until sometime on Friday. The kill totaled 108,000 head, even with last week, but 2,000 head less than 2014.

Boxed beef cutout values were firm on choice, weak on select on light to moderate demand and offerings. Choice beef 249.20 up .62, select 246.58 down .65.

Live cattle contracts on the Chicago Mercantile Exchange settled 32 points higher to 77 lower in slow trade volume. The uneven tone appeared to be tied to a combination of residual buying and profit taking. There seemed to be nervousness on both sides prior to the development of the cash cattle trade. April was down .77 at 153.27, and June was .30 lower at 146.02.

Feeder cattle ended the session mostly 82 to 190 points higher. Spot March was lower checked by the discount of the cash index, but most contracts extended the gains scored on Wednesday. Feeders were supported by follow-through buying and better commercial buying interest. March settled .65 lower at 206.57, but April was up 1.00 at 205.37.

Feeder cattle receipts at the Huss Platte Valley Auction in Nebraska totaled 3121 head. Compared to last week’s sale, steers and heifers over 600 pounds sold 7.00 higher. Demand was good from an average size crowd of buyers. Nearly 96% of the run weighed over 600 pounds. Feeder steers averaging 819 pounds traded at 205.02 per hundredweight. 817 pound heifers averaged 190.12.

Lean hogs settled 87 to 150 points lower, giving back much of Wednesday’s rally. Summer contracts were especially clobbered with triple digit losses. There seems to be more talk about supply worries, ideas that tonnage through the entire year could be compounded by higher slaughter rates and heavier carcass weights. The midday pork carcass value was sharply lower. April was down 1.17 at 66.82. May was also down 1.17 at 77.45.

Barrows and gilts in the Iowa/Minnesota direct trade closed .05 higher at 64.94 weighted average on a carcass basis, the West was also up .05 at 64.92, and the East was not reported. Missouri direct base carcass meat price closed steady from 57.00 to 62.00. Midwest hogs on a live basis were steady from 40.00 to 46.00.

The pork carcass cutout value was down 1.71 FOB plant at 68.27. All primal cuts were lower.

For the week ending February 28, Iowa barrows and gilts averaged 284.2 pounds, 0.4 pounds lighter than the previous week, only 2.4 pounds heavier than 2014.

The Thursday hog kill was estimated by USDA at 408,000 head, down 15,000 from last week and 9,000 less than 2014.