Market News

Cattle trade at steady prices early in the week

It turned out to be a surprising day in the cash cattle trade. USDA Mandatory reported a light cattle trade in the Texas Panhandle and a moderate trade in Kansas on moderate demand. Compared to last week, live sales are steady at 121.00. Trading was light in Central Nebraska, with a few early sales at 121.00. Trading remained inactive in all other areas. Triple digit losses in the futures market may have prompted feedlot operators to accept less money than they were asking for. The cattle slaughter totaled 131,000 head, 1,000 more than last week, and 3,000 greater than a year ago.

Boxed beef values were generally steady on light to moderate demand and offerings. Choice boxed beef was down .07 at 183.74, select beef was up .04 at 170.32.

Live cattle contracts on the Chicago Mercantile Exchange settled 157 to 230 points lower. The triple digit losses were due in part to strength in the U.S. dollar, and outside markets. Boxed beef values were also of concern to traders. There was also some profit taking after the recent gains. October settled 2.07 lower at 121.02, and December was down 1.77. at 121.55.

Feeder cattle contracts ended the session 170 to 210 points lower on the lack of buying support in the live cattle market and pressure in the outside markets. October settled 2.10 lower at 138.00, and November was down 1.95 at 140.90.

Feeder cattle receipts at the Tri-State Livestock Auction at MC Cook, NE on Monday totaled 2500 head. Compared to last week, steers and heifers weighing less than 600 lbs were 1.00 to 5.00 higher, weights over 600 lbs not enough to compare.  Feeder steers medium and large 1 weighing 823 pounds traded at an average of 136.51. 571 pound heifers brought 129.50 per hundredweight.

Lean hogs settled 27 points higher to 70 lower. Traders were focused on the weakness in the outside markets and the pressure in the cattle market and were unwilling to stand by early support in the hog market. Modestly lower cash prices in the direct trade were also a factor in the lower close. October was up .27 at 93.50, and December was .05 higher at 86.85, but all other contracts finished in the red.

The hog market activity and demand was moderate on Tuesday. Iowa/Minnesota direct trade barrows and gilts closed .50 higher at 91.90 on a carcass basis, the West was up .58 at 91.85, in the East the market was down.13 at 88.64. Missouri direct base carcass meat price closed steady to 2.00 higher from 85.00 to 86.00. Terminal hogs were steady to 1.00 higher from 60.00 to 62.00 live.

Pork trading was mostly moderate with light to moderate demand and mostly moderate offerings. Pork carcass value was down .01 at 198.31.

Tuesday’s hog kill is estimated at 421,000 head, 7,000 under a week ago, but 1,000 more than last year.

As harvest accelerates the number of hogs coming to market will decrease for the short term. However Saturday slaughter plans look to be somewhat larger than they have been for the last weeks of September. Wednesday’s cash bids look to be steady to firm.

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