Market News

Friday midday cash livestock markets

A few deals on cattle are being reported by DTN in Colorado on Friday at 144.00 fully steady with Thursday’s advance. But other than that the country is quiet following moderate to active trade in the South on Wednesday and light to moderate trade in the North on Thursday. It sounds like around 10,000 head moved in Nebraska yesterday from 228.00 to 230.00, 6.00 to 8.00 higher than last week’s weighted average. Other than a little cleanup trade it is sounding like business may be done for the week.

 Boxed beef cutout values were significantly higher in the morning report with the choice up 2.96 at 231.75, and select is 3.44 higher at 228.95.

A big run of feeder cattle at Missouri auctions this week with 56,537 head, more than double that of the run the previous week. Compared to the previous week, markets with comparable sales were steady to 5.00 higher, with instances of 10.00 to 13.00 higher. It was another exciting week for sellers, as they watched their cattle sell at personal highs. Many bystanders could be seen shaking their heads in disbelief at the current market prices. With corn prices fully 3.00 less than a year ago and soybeans and wheat solidly 1.00 to 2.00 lower, feeders remain optimistic. Additionally, wheat grazing is better than it was the last couple of years and talk continues about the tight supply chain for feeder cattle. 2621 head of feeder steers medium and large 1 averaging 622 pounds average 187.40 per hundredweight. 1436 heifers weighing 623 pounds traded at 168.09.

Barrows and gilts in the Iowa/Minnesota and Western direct trade areas are not reported due to confidentiality. Nationally the market is 1.82 lower with a weighted average of 75.95 on a carcass basis. Eastern hogs are 1.04 lower at 75.97. Missouri direct base carcass meat price is steady from 71.00 to 73.00. Terminal hogs are lightly tested at steady prices from 51.00 to 58.00 on a live basis.

The pork value FOB plant on a negotiated basis is .35 higher at 86.49 in the morning report.

Lean hog futures are beginning to ignore the lackluster tone of spot fundamentals, hitching instead to the star of the record-setting cattle complex. Traders recognize that eventually the red-hot beef trade will be good news for pork.

The combination of defensive corn prices and the stubborn persistence of large deferred premiums in lean hog futures surely represent a classic formula for expanding herd size and pork production.