Market News

Boxed beef is sharply lower

Feedlot country remained slow on Friday afternoon with scattered activity reported in several states. A few cattle traded in Nebraska at 251.00, and Colorado at 160.00. There appears to be several packers that would still like to buy cattle before calling it a week. However some feedlots raised their asking prices to around 160.00 in the South and 255.00 plus North thanks to the late rally on the board. The weekly cattle slaughter was estimated at 552,000 head, 17,000 less than last week and down 65,000 from last year.

Boxed beef cutout values were weak to sharply lower on light to moderate demand and light to moderate offerings. Choice beef was 3.38 lower at 238.57, and select was .44 lower at 229.88.

The monthly cattle feed report released after the close of trade looks quite neutral coming in very close to trade expectations. On feed numbers up one percent, November placemats down four percent, and marketing’s eleven percent fewer. Check the news section of our website for complete analysis of the report.

Chicago Mercantile Exchange live cattle contracts ended with strong gains on Friday despite the continued pressure in the beef values. The aggressive rebound in the feeder futures had most live cattle traders just trying to keep up. December settled 2.05 higher at 160.75 and February was up 1.57 at 160.10.

Gains in the feeder cattle markets took advantage of the new trading ranges which started on Thursday, This allowed for gains of $3.00 to 4.00 per hundredweight to hold in several of the contracts. The move above $3.00 price level received double takes as traders and market watchers have become accustomed to trade being locked at the 3.00 lower level for so long. January was 3.07 higher at 220.15, and March settled at 217.97 up 4.20.

Feeder cattle receipts at Missouri markets this week totaled 26,071 head. It was a tough week for the cattle sector. Compared to last week feeder steers and heifers traded sharply lower. Steers were 10.00 to 15.00 lower, spots of down 20.00 to 25.00. Heifers were mostly 5.00 to 10.00 lower. Demand was good and the overall supply was moderate. Feeder steers medium and large 1 averaging 673 pounds brought 238.72 per hundredweight. 673 pound heifers traded at 220.26.

Lean hogs continued to hold light pressure through the session as the support which was strong in cattle markets seemed to have overlooked the hog complex. Traders focus continued to be on the lack of support in both cash hog prices and pork values leading up to the Christmas holiday. February hogs were up .02 at 81.90, all other contracts were lower with April down .02 at 83.20.

Barrows and gilts in the Iowa/Minnesota direct trade closed 1.37 higher at 77.40 weighted average on a carcass basis, the West was up 1.09 at 77.04 and the East was down 1.18 at 75.46. Missouri direct base carcass meat price was steady to a 1.00 lower from 74.00 to 76.00.

The pork carcass cutout value FOB plant ended .55 lower at 86.93, with only the butt and loin primal higher.

Many pork producers across Iowa and Illinois are reporting especially severe problems with PRRS this winter. Many fear that sows weakened by PRRS could be left more vulnerable to PEDv.

The weekly hog slaughter was estimated at 2,298,000 head, 44,000 more than last week, but down 67,000 head from last year.