Market News

Cattle futures close lower

Feedlot country is typically quiet with packers completing the collection of the new showlists. The new offering appears to be generally larger than last week. Some ready steers and heifers have been priced around 175.00 plus in the South and 272.00 to 274.00 in the North. Both sides would like to complete business by Wednesday in order to enjoy a long holiday weekend. The kill is estimated at 115,000 head, 4,000 more than last week, and 10,000 less than last year.

Boxed beef cutout values were firm on moderate demand and light offerings. Choice beef was up .48 at 255.70, and select was .32 higher at 242.45.

Live cattle contracts on the Chicago Mercantile Exchange settled 60 to 212 points lower. Early support was short-lived as pressure in deferred contracts seemed to overtake the entire complex. Traders continued to show concern about short term buyer interest stepping back into the market ahead of the holiday weekend. It is uncertain just how much impact the losses on Monday will have on the rest of the week, or fundamental market direction as feedlot managers remain focused on recent market strength. December settled 1.40 lower at 169.50, and February was down 2.12 at 170.02.

Feeder cattle ended the session 10 to 300 points lower. Sharp losses through the cattle complex as any limited support seen in the early trade quickly eroded as additional volume stepped back into the market. The higher than expected higher placement numbers in the cattle on feed report had a delayed impact as traders once again looked at the light volume that is stepping back into the market. January settled 3.00 lower at 223.35, and March was down 3.00 at 231.45.

Feeder cattle receipts at the Joplin, MO Regional Stockyards totaled 8,000 head today. Compared to last week, steer and heifer calves under 550 pounds were 5.00 to 10.00 higher, heifer calves over 550 pounds and yearlings were steady to 3.00 higher. The demand was good on a heavy supply. Feeder steers, medium and large 1 weighing 500 to 600 pounds brought 272.00 to 291.00. 5 to 6 weight heifers traded at 230.00 to 260.00 per hundredweight.

Lean hogs settled 5 to 82 points higher. Firm support held through the complex as traders focused on the ability to draw traders back into the market over the next few days surrounding the holiday season. December futures settled off the day’s highs at 91.32 up .67, and February was .05 higher at 90.50.

Barrows and gilts in the Iowa/Minnesota direct trade closed .13 higher at 86.61 weighted average on a carcass basis, the West was up .32 at 86.62, and the East was 1.06 higher at 86.15. Missouri direct base carcass meat price was steady to 1.00 lower from 77.00 to 80.00. Midwest hogs were fully steady from 61.50 to 66.00.

The pork carcass value closed .23 lower FOB plant at 93.39. Loin, butts and ribs were lower.

Sow slaughter was 260,000 head in October, down 5.1% compared with a year ago. In the last six months, sow slaughter has declined 86,000 head, off 5.8% from the same period in 2013, hard data supporting ideas that pork producers are serious about expanding the production base.

Monday’s hog slaughter is estimated at 435,000 head, 8,000 more than last week, but the same as last year.