Market News

Livestock futures close higher

The cash cattle trade remained unestablished on Tuesday with bids and asking prices poorly defined. Judging by the new showlists distributed on Monday, fed supplies remain very manageable. Numbers are smaller, in most areas except Nebraska with larger numbers on the lists. Overall the late month offering appears somewhat smaller than last week. Early estimates of this week’s cattle kill are around 601,500 head, 1.1% higher than last week, and 2% above last year. Chain speed seems set to steadily accelerate over the next 60 to 90 days. Tuesday’s slaughter was estimated at 116,000 head, the same as last week, but 3,000 more than last year.

Boxed beef cutout values were firm to higher on moderate to fairly good demand and moderate to heavy offerings. Choice beef was up .34 at 219.01, select 1.98 higher at 206.27.

Chicago Mercantile Exchange live cattle contracts settled .30 to 1.02 higher as firm buyer support developed across the complex. Following sharp losses on Monday futures regained market support and the potential to regain the momentum seen last week.

Feeder cattle had traded mixed before turning higher near the close and finishing the day .22 to .97 higher. The inability to draw additional buyer support late in the session could have created concerns through the rest of the week.

Sioux Falls Regional Livestock at Worthing, South Dakota had receipts of 2799 cattle on Monday. Compared to last week, feeder steers were mostly steady with instances of up to 4.00 higher. Feeder heifers were 2.00 To 4.00 higher with the exception of those weighing 900 to 950 pounds 5.00 lower. Demand was moderate overall as the majority of the offerings sold in small packages and part loads. Feeder steers medium and large 1 weighing 742 pounds averaged 150.21 per hundredweight. 772 pound heifers brought 131.44.

Lean hogs finished .62 to 2.45 higher as follow through buyer support developed across the complex as traders moved into the market. The combination of higher cash hog trade in the morning report added to the increased support through the complex and pushed nearby support to triple digit gains. The overall support may not only pull prices off of support levels, but give commercial traders a springboard to move into the spring and summer markets which could build into additional market momentum.

Barrows and gilts in the Iowa/Minnesota direct trade closed .02 lower at 53.93 weighted average on a carcass basis, the West was up .08 at 53.85, and nationally the market was .22 higher at 53.67. Missouri direct base carcass meat price was steady from 47.00 to 49.00. Illinois direct trade hogs were weak form 33.00 to 42.00, and sows were 2.00 higher from 33.00 to 47.00.

The pork carcass cutout value was .67 lower at 73.82 FOB plant. Bellies were 4.73 lower, and ribs were 2.28 higher.

This week’s hog kill should again be substantial, possibly totaling close to 2,312,000 head, as much as one-percent more than last week and eight-percent greater than last year.

Tuesday’s hog kill is estimated at 439,000 head, 4,000 less than last week, but 7,000 more than a year ago.