Market News

Beef and pork values end lower

A few bids on the cattle were reported by private sources in Kansas on Thursday afternoon from 165.00 to 167.00. But overall the market was generally quiet. Buying apathy suggests significant trade will be delayed until Friday. Asking prices are around 172.00 to 173.00 in the South and 270.00 plus in the North. Cattle slaughter was estimated at 110,000 head 2,000 more than last week, but 13,000 less than last year.

Boxed beef cutout values were weak on light demand and offerings. Choice beef was down .28 at 253.35, and select was .36 lower at 239.41.

Chicago Mercantile Exchange live cattle contracts settled 10 to 150 points higher. Movement in the live pit was all over the place through the morning on Thursday. This created both a sense of stability given that prices were unable to move significantly in any direction, but it also created a lot of nervousness as traders waited for the next big market break to develop. The nearby issues outperformed the deferred and all closed higher. October was up 1.50 at 170.50 and December was up .57 at 167.32.

Feeder cattle ended the session 22 to 117 points higher Front month contracts held strong gains based on initial support and lack of additional volume seen through the complex. The market came back from what was thought to be a certain demise several times over the last several months, only to draw more attention and push prices even higher. October was up .90 at 239.75, and November was 1.17 higher at 234.22.

Feeder cattle receipts at the Huss Platte Valley Auction at Kearney, Nebraska totaled 1760 head on Wednesday. Compared to last week, 600 to 700 pound steers were 2.00 higher. Not enough other steers for a market comparison. Heifer calves sold unevenly steady. Demand was moderate to good, with very good demand for F1 baldy replacement heifers. 226 head of feeder steer calves averaging 632 pounds averaged 267.81 per hundredweight. 156 heifer calves weighing 626 brought 242.28.

Lean hogs settled unchanged to 140 points lower. Strong pressure redeveloped across the lean trade as any stability seen in nearby prices quickly eroded. December contracts led the plunge lower. The additional weakness in both cash and pork cutout markets was no surprise to futures traders, but there was little long term support expected to redevelop over the near future which could help to give support to both deferred and nearby price levels. December was 1.40 lower at 87.20, and February settled down 1.10 at 86.95.

Barrows and gilts in the Iowa/Minnesota direct trade closed .55 higher at 86.77 weighted average on a carcass basis, the West was up .44 at 86.56 and the East was not reported due to confidentiality. Missouri direct base carcass meat price was steady to 2.00 lower from 78.00 to 80.00. Midwest hogs on a live basis closed steady from 56.00 to 77.00.

The pork carcass cutout value FOB plant was down 1.51 at 97.84. Only loins and bellies were higher.

The number of new cases of PEDv as tracked in the Swine Monitoring Project has declined sharply since June and it has remained at near zero levels through the end of October.

The Thursday hog kill was estimated at 432,000 head, 3,000 more than last week, but the same as last year.