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Direct trade hogs and pork values close higher

Cattle country was quiet on Tuesday afternoon following the distribution of the new showlists. The offering appears to be smaller than last week with only Texas producers offering more ready cattle. A few showlists have been priced around 158.00 in the South and 248.00 to 250.00 in the North. Some packers appear to be very short bought, In fact DTN reports they have heard talk about cattle in Western Nebraska already trading as high as 157.00 to 158.00, however such talk remains unconfirmed. Tuesday’s cattle slaughter at 119,000 head is 3,000 more than last week but 7,000 less than last year.

Boxed beef cutout values were steady to weak on light to moderate demand and offerings. Choice beef was down .19 at 246.11, and select was .56 lower at 233.83.

Live cattle contracts on the Chicago Mercantile Exchange closed 100 to 157 points higher. Traders continued to refocus on tight supplies now that traders are past the phase of worrying about holiday weekend beef clearance. It is still too early to give the holiday weekend a grade as far as beef consumption is concerned, but from all early indications it was not expected to be very disappointing. October settled 1.00 higher at 152.42, and December was up 1.57 at 155.52.

Feeder cattle settled 160 to 265 points higher, The October through March feeder cattle futures led the market higher. The focus on tight supplies and potentially steady to strong demand growth through the next several months helped to draw additional buyers into all feeder cattle markets. September was up 1.60 at 220.25, and October was up 2.10 at 218.82.

Feeder cattle receipts at the Callaway Livestock Center, Kingdom City, Missouri totaled 2738 head. Compared to last week, the annual Labor Day yearling sale had steers and heifers under 500 pounds not well tested, over 500 pounds were steady to firm. The demand was good on a moderate to heavy supply. Feeder steers medium and large 1 averaging 840 pounds brought 221.44 per hundredweight. 563 pound heifers traded at 240.00.

Lean hogs settled 75 to 175 higher as aggressive buyer interest jumped back into the October and December contracts as traders concentrated on the potential for additional pork value support and firming cash hog prices. There was some additional caution seen in early 2015 contracts as traders remain unconvinced that strong demand will outpace expected supply increases over the next year. October settled 1.75 higher at 99.87, and December was up 1.40 at 93.40.

Barrows and gilts in the Iowa/Minnesota direct trade closed .72 higher at 93.31 weighted average on a carcass basis, the West was up 1.59 at 93.09 and the East was not reported due to confidentiality. The Missouri direct base carcass meat price is 2.00 lower from 85.00 to 86.00. Midwest barrows and gilts are steady to 3.00 lower from 59.00 to 70.00 live basis.

The pork carcass value closed .72 higher at 102.44 FOB plant. All cuts were higher with the exception of bellies.

Last week’s hog slaughter totaled no more than 1,979,000 head, 10.4% smaller than last year. With numbers still lagging so far behind last year’s pace, ideas that death loss connected to PED will be difficult to detect through the last third of 2014 may be entirely premature and unjustified.

Tuesday’s hog kill was estimated at 420,000 head, 10,000 more than last week but 23,000 less than last year.

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