Market News

Cattle futures finish with triple digit gains

This week’s cattle showlist distribution is complete, and ready numbers appear to be somewhat larger than last week, but far from burdensome. Asking prices are not well defined at this time, but guesses are feedlot attitudes will certainly be supported by firming futures. The kill was estimated by USDA at 115,000 head, even with last week, but 4,000 more than last year.

Boxed beef cutout values ended the day firm on choice, and sharply higher on select on moderate to fairly good demand and moderate offerings. Choice beef was up .62 at 189.56, and select 173.95, up 2.27.

Chicago Mercantile Exchange live cattle contracts settled, .62 to 2.42 higher as strong buyer support was evident through the complex. Support came from aggressive short covering and the premium status of recent feedlot sales. Volatility in the market is expected to be high through the week.

Feeder cattle ended the session 1.72 to 2.60 higher. The strong surge in the live cattle trade helped to draw additional buyer support back into the market. Even though prices have moved significantly higher does not mean that follow through buying will be seen through the end of the year. This could bring about additional volatility in all cattle markets.

Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 9,300 head. Compared to last week, feeder steer and heifers traded 2.00 to 6.00 higher. Steer calves are 1.00 lower, and heifer calves are unevenly steady. The demand was moderate to good for long weaned calves with multiple rounds of shots. The quality was mostly average. Feeder steers weighing 600 to 650 pounds brought 133.50 to 142.00. 5 to 650 pound heifers from 129.00 to 132.50.

Lean hogs settled .72 higher to.05 lower. The strong triple digit rally that developed in the cattle trade helped to spark additional buyer support in the nearby lean hog futures. The deferred issues were just slightly lower. The potential to draw additional late year support continues to be based on the expectation of follow through support and slowly tightening supplies.

Barrows and gilts in the Iowa/Minnesota direct trade closed .69 higher at 53.62 weighted average on a carcass basis, the west was up .65 at 53.55, and nationally the market was .60 higher at 53.32. Missouri direct base carcass meat price was steady at 40.00. Midwest hogs on a live basis were steady from 25.00 to 40.00.

The pork carcass cutout value was .57 higher at 76.38 FOB plant.

Although pork processing margins have narrowed since Thanksgiving thanks to the rising cost of live inventory, packers have still enjoyed good luck in forcing carcass values higher. From Friday to Friday, the pork carcass cutout value advanced by $1.16, Processing margins remain extraordinarily generous with carcass value nearly $20.00 above the cash index.

The hog slaughter on Monday was estimated at 444,000 head, 7,000 more than last week and 3,000 greater than last year.