Market News

Cattle futures contracts end with triple digit losses

Cattle country was very quiet on Thursday afternoon with business probably completed for the week. Of course we could see a few cleanup deals tomorrow, but the price range has surely been established. The balance of the showlists are priced around 150.00 plus in the South, and 240.00 to 242.00 in the North.

The cattle kill was estimated at 116,000 head, 3,000 below last week, and 9,000 smaller than last year.

Boxed beef cutout values were lower on light demand and light to moderate offerings. Choice beef was down 1.50 at 238.55, and select was .51 lower at 236.93.

Live cattle contracts on the Chicago Mercantile Exchange suffered triple digit losses on Thursday with only February higher. DTN analysts say the quick and simple answer for the losses can be summed up by profit taking and traders squaring positions after the recent aggressive fundamental support. But there also seemed to be some additional underlying uncertainty through the complex, especially in contracts through the last half of 2014. February settled .25 higher at 143.92 and April was down 1.20 at 140.60.

Feeder cattle ended the session 10 to 82 points lower. Even after cash cattle prices blew through old record highs the market seems to have a sense of uncertainty about where to go from here. The fact that corn prices were higher is not helping the situation either. January settled .10 lower at 170.35, and March was down .50 at 169.87.

Feeder cattle receipts at the Huss Platte Valley Auction in Nebraska totaled 5300 head on Wednesday. Compared to last week feeder steers and heifers sold steady to 5.00 higher with the most advance on offerings over 750 pounds going to the feedlot. Demand was very good from start to finish. Record slaughter cattle prices and strong futures prices helped put fuel to the feeder cattle market. Feeder steers medium and large 1 averaging 771 pounds brought 172.51 per hundredweight. 678 pound heifers traded at 169.22.

Lean hogs settled mostly 2 to 12 points higher with only the April lower. There was a morning rally in the futures but the support was quickly dashed as buyer support seemed to be very thin given the lack of support in pork values and unreported morning cash prices. Uncertainty in outside markets created some additional uncertainty for livestock traders. This could keep prices volatile through the end of the week. February settled .02 higher at 85.57, and April was .02 lower at 92.95.

Barrows and gilts in the Iowa/Minnesota direct trade closed 2.38 higher with a weighted average of 81.52 on a carcass basis, the West was up 2.06 at 80.93, and the East was not reported due to confidentiality. Missouri direct base carcass meat price was steady from 71.00 to 72.00. Terminal hogs closed steady with an instance of 2.00 lower from 51.00 to 54.00 live.

Iowa barrows and gilts averaged 283.7 pounds last week, 1.1 pounds heavier than the prior week and 8.8 pounds greater than 2013. Heavier weights in the face of cold weather and fairly aggressive chain speed seem especially troubling.

The pork value FOB plant was down 1.18 at 85.91 in the afternoon report.

Thursday’s hog kill was estimated at 434,000 head, 11,000 greater than last week, and 8,000 more than a year ago.