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Pork was lower and beef was higher

The cash cattle trade remained untested on Tuesday afternoon with both bids and asking prices poorly defined. Some showlists are priced around 175.00 in the South and 272.00 to 274.00 in the North. Packers and feedlot operators will try to complete business by Wednesday afternoon, ahead of the Thanksgiving break. The slaughter totaled 113,000 head, 1,000 more than last week, and 11,000 less than last year.

Boxed beef cutout values were higher on moderate to fairly good demand. Choice boxed beef was up 1.17 at 256.87, and select was up 1.42 at 243.67.

Chicago Mercantile Exchange live cattle contracts settled 100 points higher to 65 lower. Futures were stuck between light nearby contract buyer support and deferred contracts trying to keep up with feeder cattle losses. There was extremely light trade though the overall live cattle market continued to limit market direction through the session. December was up .65 at 170.15, and February was up 1.00 at 171.02.

Feeder cattle ended 80 to 200 points lower. Triple digit losses were seen through the feeder cattle complex, even though prices did back off early session lows. Very little additional outside market direction or fundamental market moves did not suggest further market activity. January settled 1.97 lower at 231.37, and March was 1.52 lower at 229.92.

Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 6,000 head. Feeder steers trended mostly steady to 1.00 higher, with instances of up to 8.00 higher on 650 to 700 pound steers. Feeder heifers trended 6.00 to 7.00 lower. Steer and heifer calves were mostly 1.00 to 5.00 higher with the exception of 550 to 600 pound steers and heifers that were 4.00 to 6.00 lower. Feeder steers, medium and large 1 averaging 666 pounds averaged 256.20 641 pound heifers traded at an average of 241.95.

Lean hogs settled 37 to 90 points lower. What started out as a promising follow through to the rally started Monday created some waves as pressure from the cattle completely erased initial gains and created moderate to strong pressure. Trade volume remained light and ultimately much of the explanation of how and why markets moved in the fashion it did is going to be shoved into the “it’s a holiday week” category” according to Rick Kment at DTN. December settled .37 lower at 90.95, and February was down .67 at 89.82.

Barrows and gilts in the Iowa/Minnesota direct trade closed .67 higher at 87.28 weighted average on the carcass basis, the West was up .64 at 87.25 and the East was .56 lower at 84.45. Missouri direct base carcass meat price was steady to 1.00 lower from 77.00 to 79.00. Midwest hogs on a live basis were steady from 58.00 to 66.00.

The pork carcass cutout value was down 1.23 at 92.18 FOB plant. Bellies were over 6.00 lower and hams down 2.36.

As of the week ending November 8, the ongoing theme of heavy hog weights has not changed. Barrows and gilts remained near record levels, averaging 215 pounds.

Tuesday’s hog kill at 434,000 head is up 14,000 from last week, but down 1,000 from last year.

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