A light to moderate cattle trade developed in Nebraska on Friday afternoon on very good demand. USDA Mandatory reported dressed sales were 2.00 to 4.00 higher than last week at 200.00, with limited live sales at 126.00, about 2.00 higher. Some dressed sales in Kansas were also reported at 200.00. Trading was light in Iowa with live sales ranging from 125.00 to 126.00, and dressed sales from 198.00 to 200.00. Trading remained inactive in all other areas. The estimated weekly cattle slaughter at 632,000 head is 1,000 less than last week and 17,000 down from last year.
Boxed beef cutout values were lower on light demand and light to moderate offerings. Choice beef was down 97 at 192.63, and select was .90 lower at 176.15.
Chicago Mercantile Exchange live cattle contracts settled 10 to 55 points higher with the focus on potential cash market support and the outlook for higher boxed beef values at the end of the day. October settled .55 higher at 128.25 and December was up .50 at 132.07.
Feeder cattle ended the session unchanged to 25 points lower and traded mixed much of the session with very little direction in the complex. Traders had been looking for firmness in the cash market. October settled .25 lower at 164.12, and November was down .22 at 164.92.
Feeder cattle receipts at Missouri auctions this past week totaled 31,254 head. Compared to last week, feeders sold steady to 7.00 higher, several instances of 10.00 to 15.00 higher noted on high quality calves less than 450 pounds or drafts of high quality yearling steers from 650 to 800 pounds. There was some unevenness noted at some southern markets with pressure remaining on the calves. The farther north one traveled into corn country the more strength seemed to be found on all weights. Yearlings continue to set new records at many local auctions each week as continued promises of an abundant corn supply and a lack of cattle inventory exist. Feeder steers, medium and large 1 averaging 724 pounds traded at an average of 164.85 per hundredweight. 717 pound heifers averaged 150.85.
Lean hogs settled 2 to 45 points higher. Moderate buyer support overshadowed the previous pressure in the complex with traders placing most of their focus on the hogs and pigs report. There was uncertainty as to how much clarity the report will give the market based on the bias between long term and short term supply issues that was expected to be seem. October settled .12 higher at 92.92, and December was up .40 at 88.12.
The pork carcass value FOB plant was down .30 at 102.06 on a negotiated basis. Only loins and bellies were modestly higher.
Barrows and gilts in the Iowa/Minnesota direct trade closed .79 higher at 93.42 on a carcass basis, the West was down .22 at 92.26, and in the East the market was .66 lower at 89.68. Missouri direct base carcass meat price closed steady from 86.00 to 89.00. Terminal hogs were steady to .50 lower from 61.00 to 70.00 live.
The hogs and pigs report on Friday afternoon revealed a total inventory of 68.4 million head on September 1. This was slightly higher than last September and up 3 percent from June 2013. The breeding inventory was up slightly. Market hog numbers at 65.2 million head, was up slightly from last year, and 3 percent higher than last quarter.
The weekly hog slaughter was estimated at 2,190,000 head, 10,000 more than last week, but 151,000 less than last year.
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