Market News

Live cattle down on outsides and traders waiting for cash

Chicago Mercantile Exchange live cattle futures were lower on spillover pressure from the outside markets and beef demand uncertainties. Also, traders are waiting for this week’s cash business to get underway. December was down $.72 at $124.95 and February was $.52 lower at $128.85.

Feeder cattle were lower on the same factors as the live pit, in addition to the modestly higher trade in corn. November was $.65 lower at $144.20 and January was down $1.22 at $145.50.

Direct cash cattle markets remained fairly quiet on Wednesday. There are a few bids reported in Kansas and Texas at $124 on the live basis with widespread trade probably not in the cards until Thursday or Friday. Asking prices are holding around $128 to $129+ in the South and $198+ in the North.

Boxed beef cutout values at midday were mixed with the Choice up $.30 at $193.95 and Select down $.56 at $175.89. The estimated slaughter of 114,000 head was up 3,000 on the week but down 12,000 on the year.

At the Oklahoma National Stockyards in Oklahoma City, Oklahoma, feeder cattle were firm to $3 higher. Demand was called very good for feeder cattle with an increased supply noted. Feeder cattle were in slightly thin to fleshy conditions. 603 to 696 pound feeder steers were $148 to $155.25 and 708 to 794 pounders sold at $140 to $149.25. 501 to 589 pound feeder heifers ranged from $132.50 to $145 and the 607 to 699 pound category sold at $136 to $148.

Lean hog futures were higher with nearbys up sharply on commercial demand and their discount to the cash index. December hit a 14-week high during the session, according to Dow Jones Newswires. December was $2.52 higher at $80.10 and February was up $2.52 at $85.95.

The major direct hog markets were lower with packers not finding all that much resistance, indicated by a heavy early run in the Iowa/Southern Minnesota and Western Cornbelt markets. The National Direct market opened $.58 lower on the carcass basis at $76.30 to $82.50 with the weighted average at $78.25. The Eastern Cornbelt is $1.18 lower at $76.30 to $78 for an average of $76.59, the Western Cornbelt is down $.40 at at $76.75 to $82.50 with an average of $78.82, and Iowa/Southern Minnesota is $.56 lower at $78 to $82.50 for an average of $78.82.

Butcher hogs at the terminal markets were mostly steady with an instance of $2 higher at Dorchester and tops at $50 to $58. The Missouri Direct base carcass meat price was steady at $73 to $76 on light to moderate supply and demand. Missouri Direct sows were steady at $42 to $52. Illinois Direct sows were steady to $1 higher at $48 to $60 on good demand for moderate offerings.

Pork trade at midday was very slow with light to moderate demand and mostly moderate offerings. The estimated slaughter of 435,000 head was 1,000 more than a week ago and 2,000 larger than a year ago.

For the week ending November 3, the average Iowa/Southern Minnesota hog weight of 272.1 pounds was down seven tenths of a pound on the week and 2.6 pounds on the year.

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