Market News

Limit losses in feeder futures

Feedlot country is typically quiet on Monday afternoon following the distribution of the new showlists. The ready numbers appear to be generally smaller than last week, especially in Texas. A few showlists have been priced around 166.00 in the South and 260.00 plus in the North. The cattle kill was estimated by USDA at 122,000 head, 1,000 more than last week, but 8,000 less than last year.

Boxed beef cutout values were firm on moderate demand and light offerings. Choice beef was up .49 at 245.52, and select was .57 higher at 234.67.

Chicago Mercantile Exchange live cattle contracts settled 7 to 200 points in the red on Monday. The redevelopment of limit down trade through the feeder cattle market is starting to wear on the live cattle contracts. This has been most noticeable in deferred contracts, which traded as much as 200 points lower. The nearby contracts fared slightly better, but the lack of support across the complex was evident, creating longer term questions about market sustainability. December was down .07 at 161.97, and February was .42 lower at 161.75.

Feeder cattle futures were locked limit down across the board. Very little trade was seen through the complex over the last few trading sessions due to the fact futures spent most of the trading days locked in limit lower trade. January settled at 222.60, and March at 218.25.

Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 6,000 head. Feeder steers and heifers traded 8.00 to 12.00 lower in the early rounds. Steer and heifer calves sold mostly 6.00 to 8.00 lower on limited early tests. The market is following the Chicago Mercantile Exchange Feeder cattle board, with large decreases in feeder cattle contracts last week, and contracts limit down once again today. Feeder steers, medium and large 1, calves weighing 550 to 600 pounds traded from 265.00 to 278.50. 7 to 8 weight yearlings brought 221.50 to 233.00. 605 pound heifer calves traded at 220.00. 600-615 pound yearling heifers at 239.50 to 245.50.

Lean hogs settled 47 higher to 50 points lower. The pressure through the cattle complex over the last few trading sessions has had a profound impact on the ability to draw buyers back into the lean hog complex. The trade remained sluggish. DTN analysts say, it appears the upcoming holiday pork demand surrounding hams is unable to distract traders’ attention from the cattle market crashing all around. This could continue to leave markets unsupported through the holidays. February settled .02 lower at 83.27, and April was down .47 at 84.82.

Barrows and gilts in the Iowa/Minnesota and Eastern direct trade were not reported due to confidentiality. Western hogs closed .84 lower at 80.28 weighted average on a carcass basis, nationally the market was down .89 at 81.06. Missouri direct base carcass meat price was steady to 1.00 lower from 75.00 to 79.00. Midwest hogs on a live basis closed steady to 2.00 lower from 55.00 to 60.00.

The pork carcass value was up .91 at 93.46 FOB plant. All cuts were higher.

Hog slaughter was estimated at 432,000 head, 2,000 more than last week, but 4,000 less than last year.