Market News

Cattle trade at record high prices

USDA Mandatory reported cattle trading was light to moderate in the Texas Panhandle, Kansas, Nebraska and Colorado on very good demand on Thursday afternoon. A limited number of cattle have traded at 170.00, $5.00 to 6.00 higher than last week.  The $170.00 price level set new records in all regions. Trading was still slow in all other regions but buyer inquiry was very active.  Showlists are priced around 168.00 to 170.00 in the South and 260.00 plus in the North. The kill totaled 108,000 head, 1,000 smaller than last week and 8,000 below a year ago.

Boxed beef cutout values were lower on moderate demand and heavy offerings. Choice boxed beef was down 1.57 at 249.43, and select was 1.53 lower at 233.54.

Chicago Mercantile Exchange live cattle contracts settled 100 to 127 points higher. Contracts were pressured somewhat by lower boxed beef values at midday but were still able to close with new record highs. October was 1.00 higher at 169.05, and December settled at 169.10 also a 1.00 higher.

Feeder cattle ended the session 77 to 175 points higher. Traders started to look toward the upcoming cattle on feed report due out tomorrow after the close of trade. An expected increase in placements from last year’s levels could limit the recent market support that has developed in the complex. October was up .77 at 240.22, and November was 1.52 higher at 236.70.

Feeder cattle receipts at the Bassett, Nebraska Livestock Auction totaled 3390 head on Wednesday. A trend was not given due to no comparable offering last week. Demand was very good for all offerings with a very high demand for replacement quality heifers. Feeder steers medium and large 1 with an average weight of 567 pounds brought 287.66 per hundredweight. 510 pound replacement heifers averaged 295.00 at Bassett.

Lean hogs settled unchanged to 102 points lower. Even though the futures were lower at the close, the initial pressure in the complex eased, based on the bounce of pork values in the morning report. Although it was far from sounding the all clear on lower pork prices, the lack of sharp follow through pressure was encouraging to the market and may help to bring some balance to the hog complex.  December was 1.02 lower and settled at 88.73, and February was down .40 at 87.45.

There was slow hog market activity with light to moderate demand on Thursday afternoon. Barrows and gilts in the Iowa/Minnesota direct trade closed 1.22 lower at 91.08 weighted average on a carcass basis, the West was down 1.37 at 90.81 and the East was not reported due to confidentiality. Missouri direct base carcass meat price was steady to 2.00 lower from 81.00 to 92.00. Midwest hogs on a live basis closed 1.00 to 5.00 lower from 65.00 to 75.00.

The pork carcass cutout value was down .62 at 100.54 FOB plant.

Aggressive plant processing speeds through the last couple of weeks have done little to limit overall supply of market ready hogs. This has allowed packers to come to the market with lower offering prices to producers each and every day. The concern that this cycle will continue to develop over the near future gives little short range support to the market over the coming weeks, according to DTN analysts.

The hog kill was estimated at 429.000 head, even with last week, and 1,000 more than last year.

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