Market News

Boxed beef values were lower but pork was higher

Except for a few live cattle sales in Kansas at 121.00 the feedlot trade was wrapped up for the week after the active trade on Thursday. Slaughter cattle on a national basis for negotiated cash trades through Friday morning totaled about 162,690 head. Last week’s total head count was 127,792. Feedlot managers will be pricing cattle higher on Monday, probably around 123.00 plus on a live basis. Packers slowed chain speed this past week and the slaughter totaled 651,000 head, 1,000 more than the previous week, but 18,000 less than last year.

Boxed beef values were weak to lower on moderate demand and moderate to heavy offerings. Choice boxed beef was down 1.45 at 183.63, and select is .23 lower at 167.09.

USDA’s cattle on feed report released after the close of trade showed larger than expected placements, but overall the numbers were still fairly close to pre-report estimates. The report and analysis can be found in the news section of our web site.

Chicago Mercantile Exchange live cattle contracts settled unchanged to 90 points higher on Friday on support from the outside markets and this week’s higher cash cattle trade. There was some positioning ahead of the cattle on feed report released after the close of trade. October settled .47 higher at 121.92, and December was up .35 at 122.15.

Feeder cattle ended the session12 to 70 points higher on support from the live pit. Traders appeared to be counting on lighter cattle on feed replacements in the afternoon report.  October settled .12 higher at 139.40, and November was up .70 at 142.72.

Feeder cattle receipts at Missouri auctions this week totaled 29,142 head. Compared to the previous week, feeder steers sold 1.00 to 4.00 higher and heifers were steady to 3.00 higher. Although a large portion of steers weighing 400 to 600 pounds and heifers 350 to 500 pounds sold 4.00 to 7.00 higher. The big news this week was the arrival of colder temperatures and the first hard frost of the season which helped spur demand for calves. Feeder steers medium and large 1 weighing 570 pounds averaged 143.57 per hundredweight. 574 pound heifers averaged 131.46.

Lean hogs settled 12 to 50 points in the red despite the support in the outside markets. Profit taking after the recent gains appeared to be the major market factor in the hog pit. December was down .32 points at 89.65 and February was .47 lower at 92.02.

Hog market activity was moderate with moderate demand on Friday. Iowa/Minnesota hogs closed 1.24 lower at 90.90 on the carcass basis, the West was down 1.30 at 90.60, and the East was 1.84 lower at 90.97. Missouri direct base carcass meat price was steady from 86.00 to 88.00. Terminal hogs were lightly tested from 60.00 to 63.00, steady to mostly 1.00 higher.

Pork trading was very slow with light to moderate demand and offerings. Pork carcass value was up .28 at 99.68.

The weekly hog slaughter at 2,323,000 head is the same as the previous week and 18,000 less than last year. Demand for hogs remains strong and prices on Monday are expected to be near steady.

Feeder pig prices nationally this past week were 1.00 to 5.00 per head higher. Demand was moderate to good for moderate offerings. Early weaned pigs, 10 pound basis traded from 17.00 to 50.20 per head. 40 pound pigs 37.50 to 78.49.