Feeder cattle trend steady at the Monday auctions

Chicago Mercantile Exchange live cattle contracts settled mostly higher with only the October in the red. Support in the back months came from higher corn values due to poor harvest conditions and a weak U.S. dollar. October was down 42 points at 82.20, and December was up 38 at 85.30. Boxed beef cutout values were steady on moderate demand and offerings. Choice beef was up .04 at 134.02, and select was, 02 higher at 129.49.

Feeder cattle settled mostly lower on profit taking, higher values in the corn pit and sell stops. October was 15 points lower at 94.02, and November settled at 94.17 down 30.

Oklahoma National Stockyards feeder receipts totaled 8400 head today. Compared to last week feeder cattle and calves traded steady with good demand. Feeder steers medium and large 1, calves weighing 550 to 600 pounds brought 98.75 to 107.00. 500 to 550 pound heifer calves from 92.50 to 99. Yearling steers weighing 725 to 800 pounds brought 92.50 to 95.00, and 700 to 775 pound yearling heifers traded at 83.50 to 87.75.

Cattle country is quiet following the distribution of the new show lists. The ready offering appears to be mixed, smaller in Kansas, somewhat larger in Texas and Colorado, and about steady in Nebraska. Asking prices are around 84 to 85 in the South, and 128 to 130 in the North. There are still plenty of reports of large carcasses in need of cleaning up. Yet last week’s kill was somewhat larger than expected and this could help, additionally boxed beef volume seemed to accelerate on Thursday and Friday. This could be a sign of retailers starting to anticipate a bottom. Slaughter estimates are not available due to the Columbus Day holiday.

Barrows and gilts were lightly tested at the terminals at 1.00 lower to 1.00 higher from27 to 33. Missouri direct base carcass meat price is steady from 42.00 to 46.00. Iowa/Minnesota hogs were .09 lower at 48.39 on a carcass basis, the West was .19 lower at 48.44, and the East was down .09 at 46.86. Packers appear to be relatively well positioned in terms of live inventory, at least as comfortable as last Monday. Processing margins are just adequate, so packers will try early this week to save money on live inventory if at all possible.

Lean hogs settled 25 to 105 higher with only October lower as traders’ rolled out of the front month ahead of its expiration on Wednesday. Deferred issues were higher on the run up in corn. October was down 72 at 50.12, and December was up 105 at 53.82. Pork trading was very slow with light to moderate demand and offerings. The pork carcass cutout value was .29 higher at 53.24.

Pork bellies settled 25 to 65 higher on early support from the outside markets. February was up 65 points at 84.90.