Feedlot country was generally quiet on Tuesday afternoon with only a few starter bids evident in the South at 126.00. Based on recent success and expectations of tightening fed numbers, feedlot managers are pricing new showlists on a firm basis around 130.00 plus in the South and 200.00 to 202.00 plus in the North. The DTN projected cattle slaughter for Tuesday is 123,000 head.
Private sources in the wholesale market reported a firm undertone on Monday and DTN assumes decent buying interest continues to be evident on Tuesday. Poorly margined packers certainly need to force cutouts higher.
Live cattle contracts on the Chicago Mercantile Exchange settled 40 to 95 points lower. Strong losses developed in the cattle complex especially in the front month October. Weaker feeder cattle futures eroded previous support in the other nearby contracts. October settled .95 lower at 128.60 and December was down .40 at 130.70.
Feeder cattle contracts settled 120 to 190 points lower. Sharp triple digit losses held throughout the complex. The record breaking buying activity which developed late last week seemed to be now running out of gas with very little support under current market levels. DTN analysts say Traders may also be focusing on lower cattle loss numbers coming out of South Dakota and Nebraska than previously estimated. This could deflate some of the emotional buying activity that was seen last week which followed devastating pictures of herd losses from these areas. October settled 1.67 lower at 165.70, and November was down 1.90 at 167.50.
Feeder cattle receipts at the Joplin, Missouri Regional Stockyards on Monday totaled 4386 head. Compared to last week, steer calves weighing less than 600 pounds were steady to 2.00 lower, over 600 pounds 2.00 to 6.00 higher. Heifer calves weighing less than 550 pounds were 3.00 to 6.00 lower following last week’s sharply higher trade, heifers over 550 pounds trended steady to 2.00 higher. Demand was moderate to good, supply was moderate. There were several loads of green yearlings in the offering along with a mix of weaned and un- weaned calves. Feeder steers, medium and large 1 weighing 500 to 600 pounds traded from 166.00 to 180.00. 5 to 6 weight heifers from 146.00 to 156.00.
Lean hogs settled 40 to 145 points higher. Strong buyer support developed through the lean pit on Tuesday. With the October contracts going off the board on Monday and settlements based on a two day average settling Wednesday, this drew additional attention to nearby contracts. Trade volume was sluggish. December hogs were up 1.45 at 87.80, and February was 1.15 higher at 89.80.
The Missouri direct base carcass meat price was 1.00 lower on a limited basis at 82.00, sows were mostly 1.00 lower from 59.00 to 65.00. Barrows and gilts at Peoria closed 1.00 higher from 58.00 to 60.00; Peoria sows ended 2.00 lower from 60.00 to 66.00. Red Oak, Iowa hogs were steady at 61.00, and Zumbrota, Minnesota closed 1.00 higher at 67.00 live.
Private sources in the pork trade reported general price stability to start the week. Given how production and tonnage typically grows on an aggressive basis through the first half of the fourth quarter, wholesale price stability at this time speaks well of product demand.
More specifically, bone-in ham prices were firm last week and export demand seemed to continue providing solid price support. Ham biz is expected to remain supported through November partially thanks to last-minute orders for the holidays.
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