Market News

Light cattle trade develops

A light to moderate cattle trade was evident in parts of Kansas and Nebraska on Wednesday. A few cattle have traded in Kansas at 173.00 live, steady with last week. DTN reported dressed trade developed in Nebraska at 266.00 to 267.00, steady to $1.00 lower than last weeks weighted average, USDA Mandatory reported live sales from 172.00 to 173.00 steady to 2.00 higher.. The late selloff in live futures apparently caused some feedlot managers to lower their asking prices. Although additional trade could develop before the end of the day, it is possible some buyers could still be looking to deal on Friday. The slaughter totaled 115,000 head, 9,000 more than last week and 9,000 less than last year.

Boxed beef cutout values were firm on light to moderate demand and light offerings. Choice boxed beef was up .26 at 257.13, and select was up .33 at 244.00.

Chicago Mercantile Exchange live cattle contracts settled 20 to 135 points lower. It looked like cash cattle trade may be completed before the thanksgiving break, and this quickly limited any buyer support in the complex, traders expected the cash market to remain near steady with a week ago. Strong pressure was seen in the February live contract. The additional weakness in feeder contracts added to the overall market concerns. December settled .90 lower at 169.25, and February was down the most at 169.67, 1.35 lower.

Feeder cattle ended the session 10 to 87 points lower. Early support was unable to hold through the morning trade as the focus once again turned to uncertainty about growth in demand and higher than expected short term supplies. January settled .87 lower at 230.50, and March was down .57 at 229.35.

Feeder cattle receipts at the Philip Livestock Auction, Philip, SD totaled 3820 head. Compared to last week, feeder steers weighing less than 550 pounds were steady, 550 to 700 pounds trended 4.00 to 6.00 higher. Feeder heifers less than 550 pounds were steady, 550 to 650 pounds traded 5.00 to 8.00 higher. There was good demand for several strings and many load lots and packages of feeder cattle which sold on an active to very active market. Feeder steer calves averaging 626 pounds brought 279.21 per hundredweight. 654 pound heifer calves averaged 251.26.

Lean hogs settled 22 points higher to 40 lower. Prices did strengthen some in the early session as light to moderate buyer support trickled into nearby contracts. There was light trade through the complex that kept prices extremely limited. December was unchanged at 90.95, and February was down .27 at 89.55.

Barrows and gilts in the Iowa/Minnesota direct trade closed .60 lower with a weighted average of 86.68 on a carcass basis, the West was down 1.20 at 86.05, and the East was .20 lower at 84.25. Missouri direct base carcass meat price was steady from 77.00 to 79.00. Midwest hogs on a live basis were steady with an instance of 3.00 lower from 58.00 to 63.00.

The pork carcass cutout value was .61 higher FOB plant at 92.71. Only bellies and picnics were higher.

Though pre-holiday markets are always tough to read, the trend in negotiated cash hog sales this week has been encouraging, both in terms higher bids and decent volume. Slaughter supplies seem to be becoming more manageable.

The Wednesday kill was estimated at 431,000 head, 5,000 more than last week, but 4,000 less than last year.