A light cattle business was reported in parts of Kansas and Nebraska on Friday afternoon. Live trade in Kansas is nearly 2.00 lower than last week at 125.00. Most dressed deals in Nebraska are 1.00 to 2.00 lower than last week’s weighted average at 199.00 to 202.00. Many buyers remain cautious but short bought. Asking prices were higher but not as much given the sharply lower futures market. Nominal asking prices were around 128.00 in the South and 200.00 to 202.00 in the North. The weekly kill was estimated at 635,000 head, 52,000 more than last week, but 25,000 less than last year.
Boxed beef cutout values closed lower on light demand and light to moderate offerings. Choice beef was down 1.00 at 195.03, and select was .70 lower at 174.20.
Chicago Mercantile Exchange live cattle contracts settled 85 to 170 points in the red. The triple digit losses were due to long liquidation, technical selling, and beef demand worries. Wide price shifts could develop early next week on concerns of overall beef demand expectations in the months ahead. December settled 1.47 lower at 126.72, and February was down 1.70 at 130.40.
Feeder cattle contracts ended the session 40 to 112 points lower even though corn prices fell moderately lower in the Friday trade. The sharp triple digit losses seen in the nearby live cattle futures contracts created short and long term concerns through the feeder cattle market on Friday. January settled 1.12 lower at 145.62, and March was also down 1.12 at 148.42.
Feeder cattle receipts at Missouri auctions this past week totaled 50,079 head. Compared to the previous week steers and heifers sold steady to 5.00 higher. The feeder supply was heavy this past week, and the reported volume was the second largest of the year surpassed only by the week ending January 13th. 2012. Feeder steers medium and large 1 weighing 500 to 600 lbs. averaged 162.17 per hundredweight, 6 to 7 weights brought 152.25. 500 to 600 lb. heifers traded at 142.12 per hundredweight, with the 6 to 7 weight heifers at 140.15.
Lean hogs settled mostly higher, with just a couple of months lower. The trade moved back and forth in a narrow to moderate trading range. The focus in the market appeared to be split between end of the week gains in the cash market and positioning at the end of November. Additional direction in pork demand is expected to stimulate trade activity next week. December settled .37 higher at 84.07, and February was down .20 at 86.92.
The cash hog market was slow to moderate, with light to moderate demand. Barrows and gilts in the Iowa/Minnesota direct trade closed 2.45 higher at 82.92 on a carcass basis, the West was up 2.54 at 82.71, and the East was 1.05 higher at 79.93. Missouri direct base carcass meat price was steady at the close from 69.00 to 76.00. Terminal hogs were steady to 2l.00 higher from 52.00 to 56.00.
Pork trading was very slow, with light demand and light to moderate offerings. Pork carcass cutout value was up .59 at 84.78.
The weekly hog slaughter at 2,399,000 head was 333,000 more than last week, and 35,000 greater than last year.
Despite steadily advancing cash hog bids through the week, negotiated trade volume had stayed no larger than modest to moderate. Such a relatively slow country flow has prevented packers from gaining any additional leverage. Furthermore, it may signal that market hog supplies have moved past a seasonal peak and are now becoming more manageable.