Feedlot managers completed the distribution of the new showlists on Monday afternoon. The new offering appears to be smaller than last week with only Colorado showing more steers and heifers. Some preliminary asking prices are around 130.00 in the South and 202.00 plus in the North. Private sources in the wholesale beef trade suggest mixed prices with light box movement. The DTN projected slaughter for Monday is 122,000 head.
Live cattle contracts on the Mercantile Exchange settled 12 to 72 points higher. Live contracts held moderate to strong gains throughout the session supported by recent feedlot strength and technical buying. Traders looked for direction from grain and outside markets, but information was light and hard to come by. This was the first notice day for October live and it will be interesting to see if feedlots consider delivery a real marketing option at this time. October settled .65 higher at 129.45, and December was up .67 at 133.15.
Feeder cattle were mostly 10 to 45 points lower. Futures bounced higher and lower through the session. Early support gave way to light pressure as traders refocused on the potential overbought status of feeder futures. Even with light supplies looming across the market, traders appear to be ready for a correction. But it is uncertain how stiff the correction will be given the aggressive support last week. October settled .10 lower at 167.37. November was the only contract higher, up .12 at 169.40.
Feeder cattle receipts at the Joplin, Missouri Regional Stockyards on Monday totaled 5,000 head. Compared to last week, steer and heifer calves were mostly steady. Yearlings were not well tested early. Supply and demand was called moderate. Feeder steers, medium and large 1 weighing 500 to 600 pounds traded from 172.00 to 176.00. 7 to 8 weights ranged from 158.00 to 161.00. 500 to 600 pound heifers brought 144.00 to 165.00 and 7 to 750 weights traded from 144.00 to 150.00.
Lean hogs settled unchanged to 40 points lower. Pressure in the lean pit increased as traders attention was on the general lack of direction in fundamental market moves. With little information available slightly better than no information it left most market watchers and traders nearly in heavy dusk, if not near total darkness according to DTN. Trade volume was light. Reports of higher cash prices at livestock markets need to be taken with a grain of salt due to the extremely light numbers available to establish those prices. This does not discount the overall potential market support, but does raise questions just how much volume is necessary to establish a reliable trend. October settled unchanged at 90.75, and December was down .15 at 86.35.
The Missouri direct base carcass meat price was steady to 1.00 lower from 83.00 to 84.00. Zumbrota, Minnesota hogs were 4.00 higher at 66.00 on a live basis, Peoria, IL was steady from 57.00 to 59.00 and Red Oak, Iowa was 1.00 lower at 60.00.
Though we still lack official slaughter data thanks to the government shutdown, the average private guess of last week’s hog kill was no more than 2.3 million head, still 4% smaller than 2012 and considerably below the implications of the Sept. 1 H&P report.
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