Market News

Cattle buying interest limited

Private sources reported a few bids on the cattle in Kansas at 168.00 live and in Nebraska at 165.00. 263.00 was bid on a dressed basis in Nebraska, but generally buying interest remained quite limited. Asking prices are firm at 172.00 to 173.00 in the South and 270.00 plus in the North. Business looks to be delayed until Thursday or Friday. The kill totaled 102,000 head, 10,000 smaller than last week, and 14,000 less than last year.

Boxed beef cutout values were firm to higher on moderate demand and light to moderate offerings. Choice boxed beef was up 2.07 at 253.63, and select was .67 higher at 239.77.

Chicago Mercantile Exchange live cattle contracts settled 15 to 102 points lower. Selling appeared to be tied to profit taking and caution ahead of the development of late week cash business. Ideas of cash stability and firmness in beef worked to check the development of substantial bearishness. October settled .20 lower at 169.00, and December was down 1.02 at 166.75.

Feeder cattle ended the session mostly 60 to 140 points lower. Feeder contracts had been trading higher much of the session in light volume. But ended the session in the red except for the October contract up .57 at 238.85. November was down .60 at 233.05.

Feeder cattle receipts at the Ozark’s Regional Stockyards at West Plains, Missouri totaled 2933 head on Tuesday. Compared to last week the bulk of the feeder steers and heifers traded steady with the exception of 450 to 550 weights which were 5.00 to 10.00 higher. Yearling steers were mostly steady with yearling heifers 5.00 to 10.00 higher. Demand was very good, especially on five weights. The supply was moderate. Feeder steers averaging 524 pounds traded at 275.42 per hundredweight. Heifers weighing 578 pounds brought 242.96.

Lean hogs settled 50 points higher to 160 lower. There was some firmness in the far deferred contracts, front months ended in the red. The selling interest was primarily focused on the first three contracts where there was triple digit damage. Fourth quarter fundamentals continued to send off bearish vibes. John Harrington at DTN said, spot December apparently feels the necessity to keep backpedaling as the cash index falls at a faster and faster rate. December settled at 88.60 down 1.60 and February was 1.25 lower at 88.05.

Barrows and gilts in the Iowa/Minnesota direct trade closed 1.30 lower at 86.33 weighted average on a carcass basis, the West was down 1.10 at 86.27 and the East was 1.60 lower at 84.74. Missouri direct base carcass meat price was 1.00 lower from 78.00 to 82.00. Midwest hogs on a live basis were steady to 2.00 lower from 56.00 to 77.00.

The pork carcass cutout value FOB plant was up 1.63 at 99.35. Loins, hams and bellies were higher.

DTN reports at least one major player in the swine genetic business is reporting significant signs of an expanding U.S. sow herd. Older empty barns are being retrofitted and being refilled. New sow barns are being contemplated. 

The Wednesday hog kill was estimated at 431,000 head, 10,000 more than last week and 1,000 greater than a year ago.