Market News

Feedlot cattle sharply higher

Feedlot cattle trade was quiet on Thursday after sharply higher prices in the North on Wednesday. Trade was moderate on very good demand in Nebraska and Iowa. Compared to the previous week in Nebraska dressed sales were 16.00 higher at 200.00/ A limited amount of live sales sold from 123.00 to 125.00 on Wednesday with the bulk of the live sales for the week at 124.00 Compared to last week in the Western Corn belt dressed sales were mostly 16.00 to 17.00 higher from 196.00 to 200.00 with the bulk at 200.00. Live sales were 8.00 to 9.00 higher from 122.00 to 125.00. There were some sales in the South on Tuesday at from 122.00 to 124.00.

Boxed beef cutout values in the morning report are up 2.41 on the choice at 197.31, select is 2.55 higher at 190.05.

Early losses in live cattle contracts on the Chicago Mercantile Exchange were replaced by late day buying support in the nearby contracts. Trading remained sluggish through the shortened session.

Feeder cattle saw a pullback in prices to close mixed, the move is expected to be nothing more than position taking on the shortened trading session.

Boxed beef cutout values in the morning report are up 2.41 on the choice at 197.31, select is 2.55 higher at 190.05.

Feeder cattle receipts at Missouri auctions this holiday shortened week totaled only 6481 head. Compared to last week, a very light test of feeder cattle sold sharply higher with lighter weight calves 10.00 to 20.00 higher, and heavier weight calves and a few yearlings 5.00 to 10.00 higher. The supply of feeders was light with only a few auctions actually swinging any gates prior to the Christmas holiday. Next week will likely be even lighter as most barns take time off for family. Feeder steers medium and large 1 averaging 678 pounds traded at 160.82 per hundredweight. 620 pound heifers traded at 151.01.

Lean hogs saw firm pre-holiday gains continuing to hold as traders focused on the potential that long term hog supplies are tightening even though overall current numbers remain burdensome.

Barrows and gilts in the Iowa/Minnesota direct trade in the morning report were .23 lower at 48.95 weighted average on a carcass basis, the West was .83 lower at 48.34, and the national report was down .65 at 47.40. Missouri direct base carcass meat price was steady at 43.00 with some buyers out of the market for the holiday. All Midwest reporting live markets were closed.

The pork carcass cutout value was up .63 at 69.49 in the morning report.

Iowa barrow and gilts averaged 283.7 pounds, .4 pounds lighter than the previous week and 1.5 pounds smaller than the 2014 scale check.

The Isowean pig market is suspiciously hot this month with some buyers willing to spend in the high $40 to low $50 range, significantly above the value suggested by deferred lean futures. Some have suggested that this reflects significant disease problems in the nursery that are set to get worse.