Market News

Cattle end the week about steady

A light cattle trade developed in the North on Friday afternoon with dressed deals at 254.00, about steady with last week’s weighed average basis Nebraska. It looks like business just may be done for the week in the South. The weekly kill totaled 563,000 head, 13,000 less than the previous week and 9,000 less than the same week in 2014.

Boxed beef cutout values were lower on light demand and moderate offerings. Choice beef was down 2.15 at 242.44, and select was 2.60 lower at 235.74.

The cattle inventory report released after the close of trade appears bearish to futures as all categories came out above pre-report guesstimates. For more go to the news section of our website.

Chicago Mercantile Exchange live cattle contacts settled 77 to 225 points higher. Trader direction had been hard to pin down through most of the morning with prices wandering higher and lower in a moderate range while overall volume remained moderate at best. Buyer support firmed through the complex at midday with contracts holding moderate to strong support as the focus shifted to end of the month positioning. Traders looked for increased support from outside markets as well as potential beef demand growth heading into spring and early summer. February settled 1.32 higher at 154.85, and April was up 1.77 at 152.27.

Feeder cattle ended the session 125 to 162 points higher. Firm buyer support redeveloped in the nearby contracts at midday. The focus on end of the month positioning helped to draw additional support back into the market late In the session. March settled 1.62 higher at 205.20, and April was up 1.20 at 205.35.

Feeder cattle receipts at Missouri auctions this past week totaled 27,885 head. Compared to last week, steer calves sold 10.00 to 15.00 lower, yearling steers were 5.00 to 10.00 lower. Heifer calves were 5.00 to 10.00 lower, a light test of yearling heifers sold steady to 5.00 lower. As the week progressed a few exceptions were noted on quality heifers in the 550 to 600 pound range that sold steady to 5.00 higher. Feeder steers medium and large 1 averaging 573 pounds brought 253.38 per hundredweight. 575 pound heifers brought 223.81.

Lean hogs settled 107 points lower to 47 higher with only the two front months in the red. Even though hogs managed to break away from the triple digit losses seen Thursday, the tone of the market remained weak. February settled 1.07 lower at 67.47, and April was down .95 at 72.75.

Barrows and gilts in the Iowa/Minnesota direct trade closed 1.55 lower at 66.01 weighted average on a carcass basis, the West was down 1.49 at 66.00, and in the East there was no price comparison at 64.78. Missouri direct base carcass meat price was steady from 54.00 to 62.00.

The pork carcass cutout value FOB plant was .03 higher at 78.33.

Grain market softness through the end of the month is helping to reduce overall cost of hog production in most operations. This is also allowing many producers to focus on securing additional feed sources in the current range for much of early 2015.

The weekly hog kill was estimated at 2,260,000 head, down 58,000 from last week, but 131,000 more than last year.