Market News

Beef closes steady but pork was lower

It was a typical Tuesday in cattle country with bids and asking prices still not well defined although a few showlists have been priced around 167.00 to 168.00 in the South and 260.00 plus in the North. Significant trade volume will likely be delayed until the second half of the week. The kill totaled 115,000 head, 1,000 more than last week, but 9,000 less than 2013.

Boxed beef cutout values were steady on light to moderate demand and offerings. Choice beef was steady at 249.83, and select was .24 lower at 234.93.

Chicago Mercantile Exchange live cattle contracts settled 45 to 135 points lower after trading mixed much of the session. The live contracts were pressured by the triple digit losses in feeder cattle futures that kept buyers from stepping into the market. October settled 1.35 lower at 166.55, and December was down .97 at 167.05.

Feeder cattle settled 175 to 290 points lower. Triple digit losses were based on the uncertainty of follow through beef demand support through early 2015. October settled 1.80 lower at 238.95, and November was down 2.90 at 233.92.

Feeder cattle receipts at the Sioux Falls Regional Stockyards at Worthing, South Dakota totaled 1959 head on Monday. Steer calves sold with steady to higher undertones compared to last week’s limited calf offering. Heifer calves were mostly steady with the exception of heifers under 500 pounds having a much lower undertone. Yearling steers and heifers trended steady. There was good demand for calves and yearlings. Feeder steers medium and large 1 weighing 567 pounds averaged 281.85 per hundredweight. 521 pound heifers brought 263.58.

Lean hogs settled 27 higher to 70 lower. The trade was well contained in a narrow mixed trading range through most of the session based on the potential to draw additional stability into the pork complex. But the morning pork report dashed early expectations of market firmness as pork values suffered sharp losses. December settled .70 lower at 88.45, and February was down .32 at 86.07.

Barrows and gilts in the Iowa/Minnesota direct trade closed 1.02 lower at 95.86 on a carcass basis, the West was down 1.45 with a weighted average of 95.17, Eastern hogs clos3ed 1.56 lower at 95.47. Missouri direct base carcass meat price was 1.00 to 7.00 lower from 88.00 to 93.00. Midwest hogs on alive basis were steady to 2.00 lower from 68.00 to 80.00.

The pork carcass cutout value FOB plant was 2.42 lower at 104.04 with only ribs and bellies higher.

Continued concerns surrounding PED redeveloping through the upcoming months as temperatures cool seem to be the one wild card in the lean hog market which could help to draw aggressive price support back into the market over the next few months. A strong redevelopment of PED could throw all fears of abundant hog supplies out the window for all of 2015.

The Tuesday hog slaughter was estimated at 429,000 head, 1,000 more than last week and 2,000 less than last year.