Market News

Cattle trade delayed until late week

All was quiet in cattle country on Wednesday afternoon with bids and asking prices still not fully established. A few showlists have been priced around 174.00 in the South and 270.00 plus in the North. It looks like significant trade will be delayed until Thursday or Friday. The kill totaled 106,000 head, 1,000 smaller than last week, and down 8,000 from last year.

Boxed beef cutout values were firm to higher on moderate demand and light to moderate offerings. Choice boxed beef was up .50 at 254.79, and select was .79 higher at 242.05.

Chicago Mercantile Exchange live cattle contracts settled mixed from 65 points higher to 40 lower. A lack of direction was seen through the complex as traders focused on increased activity in outside markets and the potential for additional beef demand concerns over the next few weeks. December settled unchanged at 170.82, and February was up .22 at 172.30.

Feeder cattle ended the session 5 to 30 points lower with only November in the black, as the rest of the complex gave up on buyers stepping back into the market for the time being. The main concern in the markets remains the weakness in outside markets and the lack of expected strong beef demand growth in the early holiday season. Even with lower prices it has been hard to draw active trade back into the market with most traders willing to ride this move out as they sit on the sidelines. November was .12 higher at 240.55, and January was down .17 at 237.10.

Feeder cattle receipts at the Philip Livestock Auction at Philip, SD totaled 4114 head on Tuesday. Compared to last week, steers traded steady to 4.00 higher. Feeder heifers under 500 pounds were steady, 500 to 550 pounds were 4.00 higher, 550 to 600 pounds 5.00 lower and heavy weights steady. There was good demand for several long strings of feeders, and a set of replacement heifers which sold on an active market. 619 pound steer calves averaged 174.31 per hundredweight. 567 pound heifers brought 265.10.

Lean hogs settled 5 to 95 points higher. Following the moderate to strong pressure Tuesday on hog futures, light to moderate buyer support slowly trickled back into the market. This helped to draw prices higher despite little or no new direction seen in the market. December was up .22 at 91.77, and February was .52 higher at 91.65.

There was moderate hog market activity with light to moderate demand on Wednesday. Barrows and gilts in the Iowa/Minnesota direct trade closed .81 lower at 86.46, the West was down .64 at 86.43, and the East was .10 lower at 83.87. Missouri direct base carcass meat price was steady to 1.00 lower from 77.00 to 81.00. Midwest hogs on a live basis were steady/weak to 2.00 higher from 58.00 to 66.00.

The pork carcass value was 1.52 lower at 92.64 FOB plant. All cuts with the exception of the butt primal were lower.

The premium of nearby lean futures over the spot cash market should make pork producers tougher sellers, more likely to stick to their guns and hold for better packer bids. 

The Wednesday hog kill was estimated at 426,000 head, 3,000 less than last week, and down 12,000 from last year.