Feedlot country was typically quiet on Monday following the distribution of the new showlists. The new offering appears to be somewhat smaller than last week. Preliminary asking prices are around 122.00 plus in the North, and 195.00 plus in the South. Significant trade volume may be delayed until the second half of the week. The kill totaled 127,000 head, 8,000 more than last week, but 3,000 smaller than a year ago.
Boxed beef cutout values ended sharply higher on fairly good demand and moderate offerings. Choice beef was up 1.93 at 191.03, and select was 2.65 higher at 185.70.
Chicago Mercantile Exchange live cattle contracts settled 25 to 100 points higher on Monday. There was moderate to strong support seen in the nearby contracts based on cash market support last week as well as early week positioning. Higher boxed beef prices lent additional support to the complex. There was some pressure in the deferred months with traders still concerned about long term beef demand while overall fed cattle supplies continue to build. June settled 1.00 higher at 116.15, and August was up .75 at 118.45.
Feeder cattle finished the session 32 points higher to 17 lower. The front months were pressured by the stability in the nearby corn futures. May settled .27 lower at 149.25, and August was also down .27 at 167.20.
Estimated receipts at the Oklahoma National Stockyards on Monday totaled 7500 head. Compared to last week feeder steers opened 1.00 to 2.00 higher, feeder heifers were steady. There was fairly good demand for feeder cattle on Monday, but steer and heifer calves were not well tested. Feeder steers, medium and large 1 weighing 650 to 700 lbs. traded from 157.00 to 162.00. 600 to 675 lb. heifers brought 142.75 to 148.50.
Lean hogs ended the session 37 higher to 47 lower. The market was pressured by the lack of support from the cash hog market and continued concerns over consumer demand for pork. May settled at 79.35 down .17, June was up .7 at 85.37, and July ended .37 higher at 85.52.
There was slow market activity with light demand in the hogs on Monday. Barrows and gilts in the Iowa/Minnesota direct trade closed .43 higher at 78.63 weighted averages on a carcass basis, the West was up .57 at 78.68, and the East was .56 higher at 74.59. Missouri direct base carcass meat price was steady to 2.00 higher from 70.00 to 76.00. Terminal hogs were steady to 2.50 higher from 50.00 to 52.50.
Pork trading was slow with moderate to good demand and mostly light offerings. Pork carcass cutout value was 1.44 higher at 81.99.
The hog slaughter was relatively light at 403,000 head, 10,000 less than last week, but 11,000 greater than last year. Hog and pork fundamentals remain generally defensive and hardly suggestive of rally potential. The longer the spring matures in such a defensive matter the more unlikely any kind of positive second quarter price moves becomes.