At midday we were seeing very little activity in the cash cattle trade. Just a few bids have been reported in Kansas and Texas at 123.00 and Nebraska from 195.00 to 196.00. Packers are running out of time to do what has to be done. Processing margins are lousy but that fact doesn’t cancel the need to fund basic slaughter needs to cover overhead expenses and service standing meat orders according to DTN analysts. Cattle feeders appear firm in their resolve to ask 126.00 to 127.00 live and 198.00 to 200.00 dressed.
Boxed beef cutout values were lower in the morning report with choice beef down .95 at 192.85, and select was .14 lower at 176.91.
Federer cattle receipts at the Valentine Livestock Auction at Valentine Nebraska on Thursday totaled 3825 head. There has been no recent test of the market so an accurate price comparison cannot be made. Demand was very good for all offerings, with several buyers in the seats and a few new buyer faces. 255 feeder steers medium and large 1 averaging 767 pounds traded at 181.02 per hundredweight. 283 heifers weighing 769 brought 154.26.
Barrows and gilts in the Iowa/Minnesota direct trade are not reported due to confidentiality, the West is 2.06 higher with a weighted average of 94.54 on a carcass basis, and the East is .62 lower at 89.72. Missouri direct base carcass meat price is steady from 86.00 to 89.00. Terminal hogs are fully steady from 61.00 to 70 on a live basis.
The pork carcass cutout value FOB plant was down .40 at 101.96 on a negotiated basis.
If the PED virus peaked during the summer months, as voluntary reports suggest, significant declines in weekly market hog supplies could easily extend for another 30-60 days.
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