Market News

Feeder cattle sell lower at Missouri auctions

Feedlot country was at a standstill on Friday afternoon with business wrapped up for the week. Asking prices next week are likely to be around 158.00 plus in the South and 250.00 plus in the North. While packer margins look decent, many are worried about the possibility of sluggish product demand over the next two to four weeks. The weekly cattle kill was estimated at 577,000 head, 1,000 greater than the previous week, but 76,000 less than last year.

Boxed beef cutout values were lower on light demand and light to moderate offerings. Choice beef was down 1.36 at 248.45, and select was 1.59 lower at 242.65.

Live cattle contracts on the Chicago Mercantile Exchange settled 17 to 97 points higher. Sharply lower boxed beef prices at midday pulled live cattle futures off triple digit gains, but did very little to totally wreck the aggressive nature of the market that was seen over the last couple of trading sessions. The live cattle market is an example of a market that just won’t quit and seems to come back every time. August settled .97 higher at 151.62 and October was up .12 at 154.32.

Feeder cattle closed in a narrow trading range of 20 points higher to 5 lower. August was .05 higher at 211.65, and September was down .05 at 212.30.

Feeder cattle receipts at Missouri Auctions this week totaled 22,337 head. Compared to last week feeder steers sold 5.00 to 10.000 lower and heifers were steady to 5.00 lower. The feeder supply was moderate with mid-weight calves in the 500 to 650 pound range making up much of the week’s offering. Demand was good even as prices turned lower. Feeder steers medium and large 1 averaging 625 pounds traded at 236.72 per hundredweight. 620 pound heifers brought an average of 219.07.

Lean hogs settled 70 points higher to 1.77 lower. Follow through pressure quickly developed in the lean market with the nearby August suffering a triple digit loss. All other nearby and deferred contract months saw very little price direction, the tone of the market remained weak with very little interest seen as traders broke for the weekend. The building pressure in cash markets is causing some concern through the entire complex which has been based on extremely tight short-term hog supplies fueling the expectation there won’t be enough pork to go around. August settled 1.77 lower at 127.07 and October was down .17 at 113.55.

Barrows and gilts in the Iowa/Minnesota direct trade closed .18 lower at 127.65 weighted average on a carcass basis, the West was down .18 at 127.64, and Eastern hogs were 1.42 lower at 127.14. Missouri direct base carcass meat price closed steady at 122.00. Terminal hogs were steady from 88.00 to 94.00 live in a light test.

The pork carcass cutout value was up .47 at 137.56 FOB plant in the afternoon report.

The weekly hog kill was estimated at 1,833,000 head 26,000 less than last week, and down 179,000 from last year.