Market News

A rather slow day in the futures market

Formula totals for the cattle last week were sharply lower in Texas, but more were marketed in Kansas and Nebraska. The total trade volume was generally smaller than the previous week especially in Texas. The new show lists collected on Monday shows the weeks offering to be generally steady with last week. Asking prices are around 123.00 to 124.00 on a live basis and 193.00 to 195.00 dressed. Monday’s cattle kill totaled 129,000 head, the same as last week and last year.

Boxed beef cutout values were steady on moderate demand and offerings. Choice boxed beef was up .49 at 184.90, and select was down .11 at 169.47.

Live cattle contracts settled mixed on the Chicago Mercantile Exchange on Monday. The October through April 2012 contracts all ended in the red with the balance of the deferred issues in the black. The lack of direction in the market came from the light volume. Live cattle traders appeared to be less willing to jump on “the all is good” bandwagon coming from the European debt crisis resolution touted over the weekend, according to DTN. October finished the session 1.95 lower at 120.02, and December was down 1.50 at 120.35.

Feeder cattle were mostly higher with the exception of spot October. The lack of active trade volume and a surge in grain markets while livestock futures remained under pressure created directionless movement for much of the session. October ended .62 lower at 139.00, but November was .77 higher at 143.12.

Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 8,000 head. Feeder steers and heifers were steady in a light test.  Steer and heifer calves were mostly steady. Demand was moderate to good for the calves. The quality early was mostly average. Flesh conditions were slightly thin to fleshy with average weigh ups.  500 to 600 pound steer calves brought 134.00 to 148.50.  700 to 800 pound yearling steers traded 138.50 to 142.50. Heifer calves weighing 500 to 600 pounds brought 126.50 to 135.00. 750 pound yearling heifers traded at 126.00.

Lean hogs settled 75 higher to 165 lower. Despite the strong demand seen in the pork market over the last several weeks and widespread aggressive buying in outside markets, lean hog traders remained defensive for much of the session on Monday. The lack of trade due to the Columbus Day holiday added additional softness to the market which pushed the nearby markets lower. October settled at 93.02 down 1.65, and December was also 1.65 lower at 87.75.

Hog market activity on Monday was slow with light demand. Iowa/Minnesota barrows and gilts closed 1.65 lower at 91.59, the West was down 1.37 at 91.14, and the East closed 1.27 lower at 82.27. Missouri direct base carcass meat price was steady from 85.00 to 87.00. Terminal hogs were steady to 1.00 higher from 61.00 to 64.00 on the live basis.

Pork trading was slow with light to moderate demand and offerings. Pork carcass cutout value was .09 lower at 97.56.

Monday’s hog slaughter was estimated at 431,000 head, 1,000 more than last week, and 17,000 more than 2010.

The weakness in both the cash hog price and pork cutouts Friday is not lost in the active outside market support over the weekend. Traders are looking for packers to try to aggressively cut costs, with short-term softness possible in pork values early in the week.

 

Add Comment

Your email address will not be published.


 

Stay Up to Date

Subscribe for our newsletter today and receive relevant news straight to your inbox!