USDA Mandatory reported some very early limited cattle sales in Kansas at 119.00 this would be as much as 3.00 lower than last week on light demand. These were most likely hedged cattle as risk managers responded to sharply lower futures. On the other hand the price level is nearly 2.00 over the June board, historically still a strong basis for mid-June according to DTN. Both packers and feedlot managers were shocked by the imploding futures market. Feedlots started the day asking 124.00 live and 198.00 plus dressed, they may now have to reassess their asking prices in the wake of crashing futures. The cattle kill totaled 126,000 head, 1,000 below last week, and 5,000 smaller than a year ago.
Boxed beef cutout values were steady to firm in the afternoon report on moderate to fairly good demand and moderate to heavy offerings. Choice boxed beef was up .28 at 197.76, and select was down .19 at 182.03.
Chicago Mercantile Exchange live cattle contracts settled 160 to 245 points lower. The uncertainty of the boxed beef values, and early pressure in the outside markets created additional liquidation and protection taking by many commercial and noncommercial traders. June ended the session 2.45 lower at 117.10, and August cattle settled 2.32 lower at 117.97.
Feeder cattle ended 70 to 280 points in the red on the lack of support from the live pit. August feeders settled 2.80 lower at 158.35 and September was down 2.72 at 159.50.
Feeder cattle receipts at the Ozarks Regional Stockyards at West Plains, Missouri totaled 5500 head on Tuesday. Compared to last week, steers weighing less than 800 lbs. trended steady to 5.00 higher, over 800 lbs. steady to 2.00 lower, heifers were steady to 3.00 higher. The supply was heavy with several larger lots of high quality six weight calves along with several big strings and load lots of yearling cattle. The demand was good. Grass conditions remain such that the majority of operators have either been forced or felt it time to move cattle to auction in the past two to three weeks. Feeder steers medium and large 1 averaging 608 lbs. traded at 182.50 per hundredweight. 759 lb. heifers brought 143.90.
Lean hogs settled 12 to 115 points higher. There was early pressure in the lean hog futures but that was replaced by moderate to strong support across the nearby contracts. Support came from the strength in the cash market. Traders also looked for a potential push higher in pork cutout values, based on the tightening supplies. June settled .45 higher at 93.97, and July was up 1.15 at 93.95.
Pork trading was slow with mostly moderate to good demand and mostly light to moderate offerings. Loins were 1.00 to 3.00 higher. Pork carcass cutout value was up .93 at 89.23.
The hog market was moderate to active with moderate to good demand on Wednesday. Barrows and gilts in the Iowa/Minnesota direct trade closed 3.85 higher at 96.18 on a carcass basis, the West was up 3.68 at 95.77, and in the East the market was 3.01 higher at 90.82. Missouri direct base carcass meat price was steady at 83.00. Terminal hogs sold steady to an instance of 2.00 higher from 58.00 to 61.00.
The hog kill totaled 397,000 head, 6,000 less than last week and last year. For the first three days of the week slaughter is down 40,000 head from last week, and 27,000 less than the same period last year.
The USDA has raised its official estimate of 2012 pork production by 85 million pounds thanks to heavier than expected carcass weights. Relatedly, the projected average live hog price for the year was lowered by $2.
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