Market News

Lean hogs finish with aggressive gains

It was a typical Tuesday in cattle country with no bids reported and asking prices poorly defined. A few showlists have been priced around 155.00 in the South and 245.00 to 248.00 in the North. Significant trade volume will probably be delayed until Wednesday or Thursday. The assumption may be made both sides will try hard to get business completed before Friday. The kill was estimated at 116,000 head, 1,000 more than last week but 9,000 short of 2013.

Boxed beef cutout values were weak to lower on light to moderate demand and moderate offerings. Choice boxed beef was down 1.21 at 248.48 and select was .59 lower at 238.48.

Chicago Mercantile Exchange live cattle contracts settled unchanged to 80 points higher. Futures bounced higher and lower through much of the session with moderate to strong support redeveloping at midday. The idea that meat buyer’s may continue to go into the holiday weekend with a hand to mouth mentality could help to draw additional support into the futures complex late in the week. October settled .10 higher at 148.35, and December was up .25 at 151.25.

Feeder cattle receipts at the Tri-State Livestock Auction at Mc Cook, Nebraska totaled 1200 head on Monday. There was no price comparison to last week, due to no feeder cattle sale. The demand was good on all weights of cattle. 110 head of feeder steers medium and large 1 averaging 513 pounds brought 295.03 per hundredweight. 239 heifers weighing 854 averaged 211.50.

Feeder cattle finished the session higher as light buyer support trickled into the market. The lack of strong gains was not unexpected given the recent market activity in the complex. Traders continue to focus on the potential of moderate to firm beef market support over the long term, while still maintain a tight supply level of feeder cattle for the foreseeable future. September feeders 214.20 up .92 and October 212.47 up.72.

Lean hogs settled 50 to 170 points higher as aggressive gains developed through the complex with nearby contracts holding strong gains through the close. But technically strong additional gains are going to have to continue to be seen in order to indicate a longer term, market rally. Given the recent pressure in the complex, further market support could still be seen over the near future with the market still remaining stuck in a sideways range, which could be hard to break out of before the end of the month. October settled up 1.65 at 95.10 and December 89.70 up 1.70.

Barrows and gilts in the Iowa/Minnesota direct trade closed .57 lower at 93.59 weighted average on a carcass basis, the West was down .66 at 93.44, and the East was not reported due to confidentiality. Missouri direct base carcass meat price was $7.00 lower at 88.00. Midwest barrows and gilts were fully steady on a live basis from 62.00 to 75.00.

The pork carcass cutout value gained .48 at 103.16 FOB plant. Loins ended higher but bellies were over $5.00 lower.

The enormous break we’ve seen in the wholesale pork market should work to “buy” a new wave of demand from retailers and food managers over the next 30 days or so. For example, the recent break in the market has presented an excellent opportunity for those individuals who are behind on ham bookings to secure product for the holidays at a very attractive price compared to just two weeks ago.

The Tuesday hog kill at 416,000 head, up 9,000 from last week, but 16,000 less than last year.