The feedlot cattle trade was slow to start again this week. USDA Mandatory reported trading was moderate to active in the Southern Plains on Friday afternoon on moderate to good demand. Compared to last week, live sales are 1.00 higher at 1.24. Trading was light in Central and Eastern Nebraska on moderate demand. A few live sales have traded at 123.00 to 124.00, but not enough for an adequate market test. Early dressed sales were 2.00 higher than last week at 196.00, but several were passing. Trading was light in Iowa with early sales trading at 124.00 to 125.00 live and 195.00 dressed.
The weekly cattle slaughter was estimated at 633,000 head, 22,000 more than the previous week and 7,000 larger than 2012.
The cattle on feed report released after the close of trade looks bullish. Total cattle numbers were down 7% from last year, marketing’s in August were 4% lower and placements into feedlots during August were down 11%.
Boxed beef cutout values were weak to lower on light to moderate demand and moderate offerings. Choice beef was down .62 at 192.39, and select was .94 lower at 175.96.
Live cattle contracts on the Chicago Mercantile Exchange settled 2 to 22 points higher. The focus across the complex appeared to be the balancing on the direction of the cash cattle trade at the end of the week and news from the cattle on feed report released after the close of trade. October settled .02 higher at 125.95, and December also finished .02 higher at 129.75.
Feeder cattle settled mostly 35 to 85 higher with only September in the red. Pre-report positioning was the main item of business in the feeder pit. September feeders remained sluggish throughout the session, but October through January posted aggressive gains in expectation of bullish cattle on feed report. September settled .05 lower at 157.10 and October was up .85 at 160.22.
Feeder cattle receipts at Missouri auctions this week totaled 25,558 head. Compared to last week, calves sold steady to 4.00 lower and yearlings sold mostly steady. As typical and more expected for this time of year much of the week’s offering was made up of new crop calves. Overall demand was good but yearlings and calves with shots, weaning programs and black hided found the best demand. Feeder steers medium and large 1 averaging 576 pounds brought 167.40 per hundredweight. 572 pound heifers averaged 155.16.
Lean hogs settled 32 to 122 lower. Triple digit losses hovered over the nearby contracts through the session as buyers were not willing to step back into the market at the end of the week. The expectation of cash market weakness, uncertainty about pork price direction and weakness in grain markets led to active pressure. October settled 1.10 lower at 90.05, and December was down 1.22 at 86.07.
Barrows and gilts in the Iowa/Minnesota direct trade closed 1.64 lower at 93.41 on a carcass basis, the West was down 1.72 at 93.22, and the East was 1.91 lower at 93.05. Missouri direct base carcass meat price closed steady from 89.00 to 90.00. Terminal hogs were steady to 1.00 higher from 64.00 to 68.00.
The pork carcass value was up .96 at 100.26 FOB plant in the afternoon report.
The weekly hog kill was estimated at 2,180,000 head, 8,000 more than last week 222,000 head less than last year.
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