Market News

Lean hogs settle lower but cattle futures end higher

The feedlot cattle trade was very quiet with little indication of pending activity. There were a few bids in Nebraska at 245.00 on a dressed basis. Asking prices are holding around 164.00 in the South and 253.00 to 255.00 in the North. Business is not expected before tomorrow or Friday. The kill was estimated at 112,000 head, 2,000 less than last week and 12,000 smaller than 2013.

Boxed beef cutout values were weak to lower on light to moderate demand and moderate offerings. Choice beef was down 1.73 at 245.91, and select ended .64 lower at 232.32.

Live cattle contracts settled 50 to 145 points higher on the Chicago Mercantile Exchange on Wednesday. The early week pressure in futures seemed to clear a bearish tone in the live cattle complex even though little encouragement was seen in beef values and the inability to increase overall wholesale prices. It is uncertain just how much additional longer-term support this rally will be able to establish over the next couple of trading sessions. October settled .82 higher at 157.92 and December 160.00, up 1.12.

Feeder cattle ended the session 70 to 235 points higher. Aggressive buyer support quickly stepped back into the futures market. Traders sought additional direction from the entire cattle complex. September settled .70 higher at 230.30, up .70, and October was 2.22 higher at 228.10.

Feeder cattle receipts at the Ozarks’ Regional Stockyards at West Plains, Missouri totaled 4267 head on Tuesday. Feeder steers trended uneven from 5.00 lower to 5.00 higher while feeder heifers were 2.00 to 5.00 higher. Yearling steers and heifers trended steady to 3.00 higher. Demand was very good on a heavy supply. Feeder steers medium and large 1 averaging 516 pounds brought 267.18 per hundredweight. 525 pound heifers averaged 247.60.

Lean hogs settled 75 to 225 points lower. The inability for strong support in the cattle markets to break through barriers in the lean hog complex created some uncertainty about overall long term direction in the market. There were questions about fundamental support over the short term in cash hog and pork prices. October settled 1.77 lower at 105.10 and December was down 2.02 at 93.90.

The fact that market watchers saw another round of firming cash bids in hog country on Tuesday is further proof that the early-fall recovery has not yet run out of gas. Finishing floor supplies may become burdensome in another 30-45 days or so, but they remain relatively manageable right now.

Barrows and gilts in the Iowa/Minnesota direct trade closed .06 lower at 104.56 weighted average on a carcass basis, the West was up .72 at 104.21, and the East 99.90 up 1.84. Missouri direct base carcass meat price was steady from 90.00 to 97.00. Midwest hogs were very uneven for 3.00 to 2.00 to 4.00 lower from 65.00 to 70.00.

The pork carcass cutout value in the afternoon report was down .64 at 110.11 FOB plant.

Hog slaughter was estimated at 416,000 head, 3,000 more than last week, but down 13,000 from last year.

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