The cash cattle trade remained at a standstill on Wednesday afternoon with just a few bids in Kansas at 117.00, asking prices were not well defined. It looks like we are headed toward another Friday round of business. Asking prices appear to be around 121.00 to 122.00 in the South, and 196.00 plus in the North. The kill totaled 124,000 head, even with a week ago, but 3,000 smaller than last year at this time.
Boxed beef cutout values were higher on moderate to fairly good demand and moderate offerings. Choice beef was up 1.49 at 188.66 and select was .77 higher at 181.67.
Chicago Mercantile Exchange live cattle contracts settled 30 points higher to 25 lower. The early gains in the live cattle contracts were short lived, with buyers unable to find enough support to keep prices higher through most of the complex. Prices ended mixed in a narrow range despite higher boxed beef prices at midday. August settled .30 higher at 121.22, and October was unchanged at 124.67.
Feeder cattle ended 65 to 167 points lower, the inability for the live cattle gains to hold created moderate to active pressure in the nearby feeder futures. Even with corn markets trading lower, buyers were unable to be found. August settled 1.67 lower at 152.57, and September was down 1.27 at 156.37.
Receipts at feeder sales are seasonally light this week. At the Ozark’s Regional Stockyards at West Plains, Missouri there were only 1614 head. Compared to last week, not enough in every class or weight range for an adequate price comparison However of those comparable steers under 650 pounds were 4.00 to 7.00 higher, over 650 steady, with a few over 750 pounds 2.00 to 3.00 lower. Heifers less than 550 pounds 1.00 to 5.00 higher, 550 to 750 pounds 2.00 to 4.00 lower. The supply was very light, but demand was good. Feeder steers medium and large 1 averaging 565 pounds brought 170.61 per hundredweight. 582 pound heifers traded at an average of 142.06.
Lean hog contracts settled 32 to 152 points lower. The focus in the market was the fact that buyers may be overbought. There is growing concern that the price spread between the August and October contacts may not narrow before the front month contracts go off the board next week. August settled .32 lower at 100.22, and October was down 1.52 at 8492.
Barrows and gilts in the Iowa/Minnesota direct trade closed .13 lower at 100.31 on a carcass basis, the West was up .03 at 99.87, and the East was down .20 at 94.10. Missouri direct base carcass meat price was steady to 2.00 higher from 93.00 to 94.00. Terminal hogs closed steady from 64.00 to 69.00.
The pork carcass cutout value was .34 lower at 105.01 FOB plant on a negotiated basis in the afternoon report.
All of a sudden, pork demand appears to be on a big roll. Carcass value jumped higher again on Tuesday with only rib cuts momentarily selling lower. Gross packer revenue hasn’t been this generous since July 8.
Wednesdays’ hog kill at 419,000 head, is 11,000 more than last week and 7,000 greater than last year.
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