Market News

Cattle trade at mostly lower prices in all regions

A fairly active cattle trade developed in all regions on Thursday morning at prices steady to $2.00 lower than last week from 118.50 to 120.00 live and dressed sales 1.00 to 2.00 lower at 188.00.The selling interest dried up once live cattle futures reversed from session lows and closed significantly higher. While feedlot managers will no doubt insist on more money for cattle remaining on the show lists, DTN’s guess is business is essentially done for the week. The kill totaled 126,000 head, 4,000 less than last week, and 3,000 more than a year ago.

Boxed beef cutout values were lower on the select and steady on the choice, with moderate demand and offerings. Choice boxed beef closed .03 lower at 186.00, and the select was down 1.00 at 168.29.

Chicago Mercantile exchange live cattle contracts settled 10 to 162 points higher bouncing off session lows at midsession as funds bought into the market. Even though cattle traded at lower prices in the feedlot trade the fact that they were not sharply lower lent some support to the market.  October settled .57 higher at 121.05, and December was up 1.62 at 122.85.

Feeder cattle settled 12 to 97 higher on support from the live cattle pit. The general weakness in outside markets worked to limit additional gains. October up .87 at 93.00, and December was up .57 at 88.02.

Feeder cattle receipts at the Hub City Livestock Auction at Aberdeen, South Dakota totaled 3855 head on Wednesday. Compared to last week, yearling steers and heifers sold steady. There were not sufficient numbers for a test on calves. There was an active market with good demand. Many load lots of high quality grass cattle were available. Feeder steers medium and large 1: 635 head averaging 917 lbs averaged 133.08 per hundredweight. 386 heifers weighing 835 brought 127.79.

Lean hogs settled 87 points higher to 97 lower. The front month October contract was able to hold onto early gains. Most traders were focused on rolling positions into the December and February contracts. All other contracts were under pressure with the lack of support in the cash markets limiting additional futures price support. October settled at 93.00 up .87, and December was .57 higher at 88.02.

The hog market was active on Thursday with moderate to good demand. Pork carcass cutout value was 1.92 higher at 97.68. Barrows and gilts in the Iowa/Minnesota direct trade closed .36 lower at 90.81 on a carcass basis, the west was down .14 at 90.58, and the East was 1.51 higher at 91.33. Missouri direct base carcass meat price was steady to 1.00 lower at 86.00. Terminal hogs were steady to 2.00 lower from 59.00 to 62.00 live.

Pork trading was slow to moderate with light to moderate demand and light offerings. Pork carcass cutout value was up 1.92 at 97.68.

The hog slaughter was estimated at 428,000 head, 2,000 less than last week, but 4,000 greater than 2010. Saturday’s slaughter is predicted to be 175,000 head plus. Most packers reportedly have enough hogs to finish out the week and are bidding for next week’s supply. Friday’s cash market looks weak to lower.

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