Market News

Pork values end higher but beef was lower

Bids and asking prices on the cattle are not well defined, although a few ready steers and heifers are starting out the week being priced around 161.00 in the South and 247.00 in the North. The new showlists appear to be mixed, higher in Texas, about steady in Nebraska and Kansas, but lower in Colorado. The kill was estimated at 116,000 head, 1,000 more than last week, but 6,000 less than a year ago.

Boxed beef cutout values weak to lower on light to moderate demand and moderate offerings. Choice beef was down .68 at 243.02, and select 1.14 lower at 229.47.

Live cattle contracts on the Chicago Mercantile Exchange closed mixed, from 80 points higher to 20 lower. Moderate pressure held across the complex as traders concentrated on the spillover pressure through the rest of the cattle and grain complex. October settled .12 lower at 155.50, and December was down .05 at 158.65.

Feeder cattle finished the session mostly higher with only the September contract in the red. Traders looked for additional direction from both the outside markets, as well as moves in the live cattle futures. Triple digit gains in November and January contracts were attributed to late session short covering and bottom-picking interest. September settled .30 lower at 230.30 and October was up .55 at 229.27.

Feeder cattle receipts at the Oklahoma National Stockyards totaled 8100 head on Monday. Feeder steers and heifers opened mostly steady. Once again, very few yearlings on offer with the majority of the supply consisting of un-weaned calves. 575 to 600 pound steer calves brought 243.50 to 257.50 per hundredweight. 550 to 6 weight heifer calves ranged from 227.00 to 239.00

Lean hogs settled 20 to 132 points higher. Mixed trade was seen through much of the session. Most of the 2015 contracts saw light losses during the session as traders remained uncertain just how much additional support will develop in demand through next spring and summer. If supplies continue to build over the next six months, it may be hard to push additional pork through the marketing channels even with lean hogs priced near $90.00 per hundredweight. October up 1.32 at 107.30, and December up .85 at 95.70.

Barrows and gilts in the Iowa/Minnesota direct trade closed 1.00 higher with a weighted average of 106.75 on a carcass basis, the West was up .86 at 105.52, and the East is .17 higher at 99.94. Missouri direct base carcass meat price is steady to 2.00 higher from 90.00 to 99.00. Midwest hogs closed steady with instances of 2.00 to 4.00 higher from 65.00 to 78.00.

The pork carcass cutout value FOB plant 115.60 up 2.06. Bellies, loins, butts and ribs all finished higher

Seasonal realities are rough to bet against. Barring a shocking surprise, the weekly hog slaughter is now set to increase by 200,000 or so over the next 30-60 days.

Hog slaughter for Monday was estimated by USDA at 410,000 head, 6,000 more than last week, but 12,000 less than 2013.