The main item of business in cattle country on Monday is the distribution of the new showlists. Bids and asking prices are not well defined. Market psychology may begin on the defensive thanks to board discounts, poor processing margins, and sinking carcass value. Yet the cash cattle trade has been on a roll over the last month and feedlot confidence in terms of leverage and manageable supplies is not likely to evaporate overnight, according to DTN.
Boxed beef cutout values are mixed in the morning report with the choice boxes up .79 at 197.61, and the select is down .43 at 179.27.
Feeder cattle receipts at the Ft. Pierre, South Dakota Livestock Auction totaled 7828 head on Friday. Compared to a week ago, feeder steers and heifers sold steady. There was very good demand for many long strings and many packages of feeder cattle which sold on a very active market. Feeder steers, medium and large 1 averaging 528 lbs. brought 170.24 per hundredweight. 533 lb. heifers traded at 151.82 on average.
Barrows and gilts in the Iowa/Minnesota and Eastern direct trade areas are not reported due to confidentiality, in the West the market is 2.52 lower at 77.88 on a carcass basis. Missouri direct base carcass meat price is steady to 1.00 lower from 76.00 to 77.00. Terminal hogs are steady to 2.00 lower on a live basis from 52.00 to 56.00.
Hurricane Sandy threatens to be extremely disruptive and destructive over the next few days. Natural disasters of this kind are always bad news for the restaurant trade as well as meat demand in general.