Market News

A wide separation between cattle asking prices and bids

Cattle country remained in low gear with a wide spread existing between preliminary bids of 121.00 to 123.00 live and asking prices of 127.00 plus. Feedlot operators are asking for 203.00 to 205.00 dressed, but packers are only willing to bid 200.00 to 202.00. Significant trade volume could be delayed until Friday.  Cattle slaughter was estimated at 128,000 head, 3,000 less than last week, and down 4,000 from last year.

Boxed beef cutout values were weak to lower on light to moderate demand and moderate offerings. Choice beef was down .52 at 194.43, and select was .82 lower at 175.67.

Live cattle contracts settled 72 to 125 points higher on the Chicago Mercantile Exchange on Wednesday Support came from the broad rally in stock and commodity markets. Dow Jones Newswire reported the recovery in European economies could add to global meat demand which is already rising quickly because of fast growing economies in the developing world. December settled 1.02 higher at 121.60, and February was up 1.15 at 123.60.

Feeder cattle ended the session 50 to 120 points higher. Trade volume was extremely sluggish throughout much of the session, but the buying in nearby live cattle futures contracts drew January and March feeder futures higher. January was up 1.20 at 146.02, and February was 1.15 higher at 123.60.

Feeder cattle receipts at the St. Joseph, Missouri Stockyards on Wednesday totaled 3800 head. Compared to two weeks ago, steer and heifer calves opened firm to 5.00 higher with the full advance on weights less than 550 pounds. Yearling feeders were not well tested early. Feeder steers medium and large 1 weighing 500 to 600 pounds brought 154.25 to 175.00 per hundredweight, 5 to 6 weight heifers traded from 130 to 139.50.

Lean hogs settled 5 to 37 points higher on the continued increase in cash prices and additional support came from the outside stock and commodity markets. The outside markets rallied sharply as European leaders moved closer to a solution to the financial crisis there.  December settled .17 higher at 88.17 and February was up .37 at 91.57.

The hog market was active with good demand on Wednesday afternoon. Barrows and gilts in the Iowa/Minnesota direct trade closed 1.39 higher at 85.65 weighted average on a carcass basis, the West was up 1.69 at 85.56, and in the East the market was down .49 at 81.73. Missouri direct base carcass meat price closed steady to 1.00 higher from 79.00 to 80.00. Terminal hog prices were steady to 1.00 higher with an instance of 1.00 lower from 57.00 to 61.00.

Pork trading was slow to moderate with mostly light demand and mostly moderate to heavy offerings. Pork carcass cutout values were 2.10 lower at 88.21.

Hog slaughter at 429,000 head is 2,000 more than last week, and up 1,000 from last year. Preliminary ideas point to yet another busy Saturday for pork processors. There are some signs that the first Saturday of December could see a slaughter close to 200,000 head. If such a number is in the ballpark, it means that hog buyers will need to stay focused on procurement throughout the balance of the week.