Market News

The cash hog market continues to tumble lower

The cash cattle market was quiet on Monday afternoon following the distribution of the new showlists. The fed cattle offering appears to be smaller in Texas, Nebraska and Colorado, but larger in Kansas. A few asking prices have been suggested around 157.00 to 158.00 in the South and 248.00 to 250.00 in the North. The kill totaled 108,000 head, 6,000 below last week and 11,000 smaller than last year.

Boxed beef cutout values were lower on light to moderate demand and moderate offerings. Choice beef was down .44 at 255.10 and select was 1.81 lower at 246.57.

Live cattle contracts on the Chicago Mercantile Exchange settled 20 to 100 points higher as moderate to strong buyer support redeveloped following the volatile shifts seen through the market during the morning trade. Support came from renewed interest in the feeder cattle complex and the ability for boxed beef to remain mixed in a narrow range. August was up a dollar at 151.60 and October was .80 higher at 148.55.

Feeder cattle ended 80 to 155 points in the back after bouncing higher and lower through the morning session with little direction coming from any fundamental shifts in the market. Expectations that that the cattle on feed report due out on Friday may show lower placements may have lent some support to the complex. Lower corn values were also supportive. August feeders settled .80 higher at 218.02, and September was up .97 at 216.07.

Feeder cattle receipts at the Joplin, Missouri Regional Stockyards on Monday totaled 4,000 head. Compared to last week, steer and heifer calves under 450 pounds are steady. Calves over 450 pounds and yearlings opened 4.00 to 5.00 lower. Demand is moderate and supply was moderate. Feeder steers, medium and large 1 weighing 500 to 600 pounds traded from 230.00 to 260.00 per hundredweight. 5 to 6 weight heifers brought 225.00 to 233.00.

Lean hogs settled narrowly mixed from 15 higher to 30 points lower as strong pressure redeveloped through the complex during the forenoon, although nearby contracts did bounce back from session lows. The lack of support through the complex is blamed on a weakening cash market and faltering wholesale pork values. October settled .15 higher at 95.10, and December was down .15 at 88.87.

Barrows and gilts in the Iowa/Minnesota direct trade closed 1.91 lower at 101.85 weighted average on a carcass basis, the West was down 1.76 at 101.76, and the East was 1.61 lower at 101.16. Missouri direct base carcass meat price is 3.00 lower from 98.00 to 100.00. Midwest hogs on a live basis closed 3.00 to 5.00 lower from 69.00 to 80.00.

The pork carcass cutout value was down .78 FOB plant at 111.02.

For the week ending Aug. 2, federally inspected hog carcass weights averaged 213 pounds, remaining steady with the previous week’s average. Year to date carcass weights have averaged 214 pounds, 3.8% heavier than the same period last year. Weights are not anticipated to drift lower in the coming weeks but should instead begin to increase on a seasonal basis during the fall.

Monday’s hog kill was estimated at 402,000 head, 27,000 more than last week, but 22,000 less than last year.