The feedlot cattle trade was at a standstill on Tuesday with just a few starter bids at 96.00 in parts of the South and Colorado. Asking prices are around 100.00 in the South and 156.00 to 157.00 in the North. The big question is whether beef cutout values can improve enough to justify better packer bids, and can futures prices show improvement. That could take a few days to sort out and delay trade until late in the week. Tuesday’s cattle kill was estimated at 129,000 head, 1,000 below last week, but 3,000 greater than last year at this time.

Boxed beef cutout values were steady to weak on light demand and light to moderate offerings. Choice boxed beef was up .03 at 157.62, and select was down .35 at 149.18.

Chicago Mercantile Exchange live cattle contracts settled 27 points higher to 40 points lower on spreads. The live issues bounced higher and lower through the morning session as traders monitored outside markets before stepping back into the market. Trading was sluggish as traders waited for the cash market to develop. October settled .10 lower at 97.15, and December was unchanged at 99.30.

Feeder cattle settled 12 to 125 points higher on the sharp losses in the corn pit. Lower grain prices are supportive to futures as they can ultimately result in lower input costs for producers. Soon to expire September settled at 110.00 up 1.20 and October finished at 110.40 up 1.00.

Feeder cattle receipts at the Joplin, MO Regional Stockyards on Monday totaled 3764 head. Compared to last week, steer calves trended 3.00 to 5.00 lower, heifer calves 2.00 to 3.00 lower and yearlings steady to 3.00 lower. Feeder steers medium and large 1 and 1-2 weighing 500 to 600 pounds traded from 99.00 to 116.00, 7 to 8 weights from 102.25 to 113.25. 500 to 600 pound heifers brought 90.50 to 109.00 and 7 to 8 weights from 87.00 to 97.00 per hundredweight.

Barrows and gilts in the Iowa/Minnesota direct trade closed 3.14 higher at 81.25 on a carcass basis, the West was up 2.78 at 80.97, but the East closed .87 lower at 78.51. The Missouri direct base carcass meat price closed steady to 1.00 lower from 74.00 to 75.00.Tuesday’s hog slaughter was estimated at 417,000 head, the same as last week, but 22,000 less than a year ago. The Hogs and Pigs report confirmation that pork supplies are going to stay tight for 2011 provides ample support to expectations for continued strength in the cash hog market over the foreseeable future according to DTN’s John Harington.

The pork carcass cutout value was down 2.78 and closed at 87.90. Pork trading was slow to moderate, with mostly light to moderate demand and light to moderate offerings.

Lean hog contracts settled 10 to 87 points lower on profit taking. Traders appeared to be unwilling to aggressively step back into the market despite sharp gains in hog prices in the Iowa/Minnesota and Western direct trade areas at midday.  October settled .57 lower at 78.57, and December was down .87 at 75.90.