Market News

Futures trading slowed by the holiday

Cattle country was quiet on Monday following the distribution of the new showlists. The ready offering of steers and heifers appears to be generally larger especially in the South. A few of the showlists have been priced around 126.00 plus in the South and 198.00 plus in the North. Significant trade volume may not develop until sometime in the second half of the week. The cattle slaughter totaled 113,000 head, 5,000 smaller than last week and 10,000 below last year.

Boxed beef cutout values were higher on choice and steady on select on light to moderate demand and offerings. Choice beef ended the day 1.43 higher at 193.30, and select was up .15 at 173.71.

Chicago Mercantile Exchange live cattle contracts settled unchanged to lower despite holding nearly steady through much of the morning session. Contracts closed lower based on the continued pressure in the grain complex. Rick Kment at DTN says the direction of the fed cattle market is more a reflection of overall general market buyer interest, and the lightly traded holiday traffic was cautious to step into the market as buyers. December settled .40 lower at 125.35, and February was unchanged at 129.35.

Feeder cattle were mostly 25 to 62 points higher with only spot November in the red. The losses in the corn market allowed for light support to develop in the deferred contracts. The lack of overall trade activity through most of the markets due to the holiday kept prices from moving in a wide range. November was down .20 at 144.00, and January was up .35 at 145.95.

Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 7850 head. Compared to last week, feeder steers and heifers sold steady, and calves were steady to 2.00 lower. The early demand was moderate, and the early supply included several bulls. Feeder steer calves medium and large 1 weighing 500 to 550 lbs. brought 160.00 to 169.00. 6 to 7 weight yearling’s traded at 145.00 to 152.00. 5 to 6 weight heifers calves traded at 139.00 to 143.00. 600 to 670 lbs. heifers brought 138.25 to 139.00.

Lean hog contracts traded unchanged to 122 points lower, and trade volume was described as sluggish as traders focused on the pressure in the grain markets. Like last week the deferred contracts posted more significant pressure as the longer term demand for pork through the middle of next year has reared its head once again and attracted trader attention. December was down .42 at 80.32, and February ended .05 lower at 86.27.

Barrows and gilts in the Iowa/Minnesota direct trade closed .85 higher at 77.98 on a carcass basis, the West was up .67 at 77.81, and the East was down 4.94 at 75.45. Missouri direct base carcass meat price was uneven, 1.00 lower to 2.00 higher from 71.00 to 77.00. Terminal hogs closed steady to 1.00 lower from 50.00 to 58.00.

Pork trading was slow, with mostly light demand and light to moderate offerings. Pork carcass cutout value was down .90 at 85.73.

Hog slaughter numbers were down due to the Veterans Day holiday and that worked to pressure prices. Monday’s hog kill was estimated at 399,000 head, 35,000 less than last week, and down 43,000 from last year. Packers reportedly have enough hogs lined up to meet slaughter schedules ahead of the low demand period for pork going into Thanksgiving week.