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Cash hogs and pork values close higher

It was typically quiet in cattle country on Monday afternoon following the distribution of the new showlists. Ready numbers appear to be about steady with last week. There are reports from DTN that a few showlists are priced around 164.00 in the South and 255.00 plus in the North. The kill was estimated at 115,000 head, the same as last week, but down 4,000 from last year.

Boxed beef cutout values are lower on light to moderate demand and moderate offerings. Choice beef was down .91 at 249.02, and select was 1.26 lower at 233.28.

Live cattle contracts on the Chicago Mercantile Exchange settled 30 higher to 50 lower in a light trade and the few players stepping in and out of the market had some significant control of price direction. While October held on to a moderate gain, pressure in the deferred contracts limited the ability to draw additional buyer support into the complex. October settled .07 higher at 156.35, and December was down .22 at 159.02.

Feeder cattle ended the session 22 points higher to 22 lower in a sluggish trade. Traders were caught between the potential for tight demand to keep buyers active, and growing questions as to just how strong beef demand will remain through most of the fall. September settled .22 lower at 229.25, and October was .07 lower at 225.85.

Feeder cattle receipts at the Joplin, Missouri Regional Stockyards total 4500 head today. Compared to last week, steer calves opened steady to 5.00 higher, with the increase on the 400 weights, heifer calves were steady. There was no early test on yearlings. Demand was good and supply was moderate. Feeder steers medium and large 1 weighing 500 to 600 pounds ranged from 242.00 to 263.00 per hundredweight. 5 to 6 weight heifers brought 232.00 to 253.00.

Lean hogs settled 55 higher to 45 points lower. Trade support firmed some in nearby lean contracts despite pressure in morning reports concerning both cash values and pork cutouts. The expectation that traders oversold the complex last week helped to draw light support through the nearby contracts, although traders  in deferred summer 2015 contracts were much less convinced additional support can be maintained. October settled .37 higher at 106.07 and December was down .45 at 95.45.

Barrows and gilts in the Iowa/Minnesota direct trade closed .76 higher at 103.74 weighted average on a carcass basis, the West was up .58 at 103.49, and the East was not reported due to confidentiality. Missouri direct base carcass meat price closed 3.00 higher from 90.00 to 97.00. Barrows and gilts on a live basis at Midwest markets were steady to 3.00 higher from 63.00 to 74.00.

The pork carcass value FOB plant is 2.28 higher at 108.85. Loins showed the biggest gain of over 8.00.

The potential damage tied to PED is still a big guessing game, according to DTN’s John Harrington. While the negative supply impact should lessen in magnitude moving forward, new cases of the virus continue to be reported. Serious concerns remain that the incidence of cases will increase again as fall and winter weather is more conducive to the spreading of the virus.

Monday’s hog slaughter at an estimated 404,000 head, is up 4,000 from last week, but down 28,000 from last year.

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