Market News

Livestock futures contracts settle higher

It was another quiet afternoon in cattle country and significant business will not develop until the end of the week. Private sources did report a few bids on the table in Kansas at 162.00 live. Asking prices are around 168.00 to 170.00 in the South, and 260.00 plus dressed in the North. The kill totaled 112,000 head, 4,000 more than last week, but 12,000 smaller than a year ago.

Boxed beef cutout values were higher on choice and steady on select on moderate demand and offerings. Choice boxed beef was up 1.16 at 251.00 and select was .14 higher at 235.07.

Chicago Mercantile Exchange live cattle contracts settled 35 to 157 higher. Futures rebounded based on the potential of cash market support at the end of the week. Triple digit gains held in the front month contracts. Deferred contracts were higher, but the lack of momentum in the complex suggested there is still underlying concern about long term demand growth at current price levels. October settled 1.50 higher at 168.05 and Dece3mber was up 1.05 a 168.10.

Feeder cattle ended 50 to 125 points higher. The feeder cattle shifted from leading the live cattle complex early in the week to tagging along with strong moves in nearby live cattle trade. The focus on firming beef values in the morning report and the potential to push cash cattle prices higher gained some renewed attention in the feeder pit. October settled .50 higher at 239.45, and November was up 1.25 at 235.17.

Feeder cattle receipts at the Ozarks Regional Stockyards at West Plains, MO totaled 3978 head on Tuesday. Compared to last week, the bulk of the feeder steers and heifers trended 2.00 to 5.00 lower, with yearlings trending steady to 5.00 higher. Demand was moderate early in the sale and improved throughout the day as several high quality weaned and vaccinated packages entered the market. Feeder steers medium and large 1 averaging 520 pounds brought 271.01 per hundredweight. 522 pound heifers traded at 252.05.

Lean hogs settled 70 to 205 points higher as strong buyer support redeveloped despite continued pressure in both the cash hog and pork cutout values. Traders focused on the recent pressure, which helped to draw moderate commercial buyer interest back into the complex. December settled 1.30 higher at 89.75, and February was up 1.77 at 87.85.

Barrows and gilts in the Iowa/Minnesota direct trade closed 3.34 lower with a weighted average of 92.32 on a carcass basis, the West was down 2.85 at 92.19, and the East was 1.99 lower at 93.48. Missouri direct base carcass meat price was 1.00 to 5.00 lower from 83.00 to 92.00. Midwest hogs on a live basis closed steady to weak with an instance of 2.00 lower from 67.00 to 80.00.

The pork carcass value closed 2.88 lower at 101.16 FOB plant. All cuts were lower with the exception of ribs.

Pork values continue to quickly erode. This is creating additional concern about not only short-term market direction, but overall long-term market stability. Further pressure in both pork values and cash markets will only add to futures market liquidation, which has been seen early in the week.

Wednesday’s hog kill was estimated at 429,000 head, 1,000 more than last week and 4,000 greater than last year.