With the exception of a handful of trade in Nebraska, the cattle trade was quiet on Thursday after yesterday’s active business. It looks like the cash trade is completed for the week. Cattle traded from 126.00 to 127.00 live, steady to 1.00 higher than a week ago. On a dressed basis in the North, most sold from 202.00 to 204.00, steady to 2.00 higher than the previous week. Cattle slaughter on Thursday was estimated at 116,000 head, 2,000 below last week and 13,000 smaller than a year ago.
Boxed beef cutout values were steady to weak on light demand and offerings. Choice beef was down .05 at 188.92, and the select was .65 lower at 187.67. Total beef in freezers was down four percent from last month, but up one percent from last year, according to today’s USDA Cold Storage Report.
Chicago Mercantile Exchange live cattle contracts settled moderately higher after renewed buyer support developed across the live cattle markets following the steady to higher cash cattle market on Wednesday. Futures fell off the session highs as the trade struggled with very little additional direction in the market. The weak boxed beef values continue to weigh on futures. April settled .30 higher at 125.25, and June was up .22 at 122.17.
Feeder cattle ended the session 15 to 50 points higher. Although there was support in the live cattle market, there is still concern about the longer term demand for beef as well as expectations supplies will continue to grow over the next several months. March feeders settled .15 higher and April was up .550 at 153.60.
Feeder cattle receipts at the Hub City Livestock Auction at Aberdeen, South Dakota totaled 5824 head on Wednesday. Feeder cattle sold unevenly steady with a week ago. It was an active market with very good demand. Feeder steers medium and large 1 with an average weight of 779 lbs. brought 152.17 per hundredweight. Heifers averaging 779 pounds brought 1206.89 on a per head basis.
Lean hogs settled .55 lower to 62 points higher. Although cash markets were weak at midday along with uncertainty about the direction of pork wholesale prices, buying activity developed across the nearby contracts. There was short covering and caution ahead of USDA’s cold storage report that was released Thursday afternoon. The report showed frozen pork supplies were up seven percent from the previous month, and up nine percent from last year. April was up .42 at 85.40, and June settled .62 higher at 92.85.
There was slow market activity with light demand in the cash hog trade on Thursday. Barrows and gilts in the Iowa/Minnesota direct trade closed .78 lower at 83.60 on a carcass basis, the West was down .62 at 83.42, and the East was .46 lower at 81.13. Missouri direct base carcass meat price closed steady at 81.00. Terminal hogs were steady/weak to 1.00 lower from 56.00 to 58.00 live.
Pork trading was moderate with light to moderate demand and moderate to heavy offerings. Pork carcass cutout value was down .17 at 79.82.
Thursday’s hog kill was estimated at 416,000 head, the same as last week and last year.
Weekly average hog weights continue to rise, increasing 1 pound from week ago levels, and holding nearly 2 pounds higher than levels seen a year ago. This is creating additional pork in the already burdensome market and is expected to create additional market pressure.