Market News

Feeder cattle trade steady to higher at Monday auction

The cash cattle market was at a standstill on Tuesday with no bids evident and very little interest seen through the trade. At this point, it is expected to be the last half of the week before active trade develops. Both sides are aggressively trying to advance their positions. Asking prices are around 164.00 in the South, and 253.00 to 255.00 plus in the North. USDA estimated the slaughter at 115,000 head, 1,000 less than last week, and 8,000 smaller than last year.

Boxed beef cutout values were weak to lower on moderate demand and moderate to heavy offerings. Choice boxed beef was down 1.38 at 247.64, and select is .32 lower at 232.96.

Live cattle contracts on the Chicago Mercantile Exchange settled 15 to 45 points lower, but did regain most of the morning losses as lack of follow through pressure in the lean hog and feeder cattle markets seemed to drive trade activity through most of the cattle contracts. There was very little direction available from market fundamentals over the last couple of days, prices may be unable to break out of the current market range, and may wander in this zone for a while. October settled .15 lower at 156.320, and December was also .15 lower at 158.87.

Feeder cattle ended the session 35 points higher to 22 lower after battling back and forth through the morning trade after holding strong triple digit losses. September settled .35 higher at 229.60 and October was up .02 at 225.87.

Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 8100 head. Compared to last week, feeder steers and heifers trended steady to firm. Steer and heifer calves were mostly steady to 5.00 higher. There were very few true yearlings on offer with the majority of the supply consisting of un-weaned calves, as a result the most advances were recorded on larger packages of weaned cattle. Feeder steers medium and large 1 averaging 868 pounds brought 218.33 per hundredweight. 628 pound heifers traded at 230.26.

Lean hogs settled 80 points higher to 80 lower with wide separation between the October contracts and the rest of the complex. Early sharp trading losses softened as the session progressed, and that left the markets mixed at the close. The fear of weaker demand through the end of the year kept markets under pressure. October settled .80 higher at 106.87, and December was up .07 at 95.82.

Barrows and gilts in the Iowa/Minnesota direct trade closed .92 higher at 104.66 weighted average on a carcass basis. The West was up .72 at 104.21, and the East was not reported due to confidentiality. Missouri direct base carcass meat price was steady from 90.00 to 97.00. Midwest hogs on a live basis closed fully steady from 65.00 to 74.00.

The pork carcass value was up 1.90 at 110.75 FOB plant.

Weights on the hogs moving to market remain well above year ago levels, almost large enough to offset the smaller head count. Over the next several weeks, hog kills should continue to trend seasonally larger and the gap to last year’s weekly kill volume will get smaller and smaller.

Tuesday’s hog slaughter was estimated at 417,000 head, 12,000 more than last week, but 15,000 less than last year.

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