Market News

Beef and pork values close lower

The cash cattle trade was pretty well wrapped up for the week on Friday afternoon. Compared to the previous week live sales were 2.00 lower  from 147.00 to 148.00, and dressed sales were steady to 3.00 lower from 237.00 to 240.00, mostly 237.00 to 238.00. Producers scrambled to get cattle sold as futures contracts for August were down the limit on Thursday. Cattle remaining on the showlists were priced around 150.00 in the South and 240.00 plus in the North. The weekly cattle kill was estimated at 555,000 head, 6,000 above the previous week, but 59,000 less than 2014.

Boxed beef cutout values were lower on light demand and light to moderate offerings. Choice beef was down 2.04 at 243.12, and select was 1.98 lower at 248.15.

Chicago Mercantile Exchange live cattle contracts traded narrowly mixed as traders seemed to be willing to just tread water through the end of the week. The light support seen in the front month June should not be misread as growing strength in the complex, but the focus on short covering before the weekend and positioning as traders get ready to close the month of June and second quarter activity in the next couple of trading sessions. June live cattle 148.60 up .10 and August.05 higher at 148.62.

Feeder cattle were lower on Friday despite the light support in live cattle futures. Feeders continued to hold aggressive losses as traders continued to concentrate on the lack of underlying support both short and long term. August was down 1.85 at 217.20, and September 215.90 down 1.37.

Feeder cattle receipts at Missouri auctions this week totaled 28.538 head. Compared to last week, feeder steers and heifers sold very uneven, mostly 5.00 lower to 5.00 higher, with spots 10.00 lower. Demand was good, although some producers were out of the barns and in the fields. The supply was moderate. The majority of the feeder cattle offering consisted of 5 to 7 weights although there were several loads of 700 to 800 pound heifers. Feeder steers medium and large 1 averaging 574 pounds averaged 269.59 per hundredweight. 570 pound heifers averaged 235.14.

Lean hogs traded mixed much of the session where the main focus of traders was past the closing bell to the release of the quarterly hogs and pigs report. Traders had been expecting extremely large supplies of hogs available to the market, but how large and how consistent the growth in numbers will be kept many traders guessing on either side of the market. July hogs up .70 at 75.35, and August .65 higher at 72.80.

Barrows and gilts in the Iowa/Minnesota direct trade closed .16 higher at 74.16 weighted average on a carcass basis, the West was up .17 at 74.06, and the east had no price comparison at 77.34. Missouri direct base carcass meat price was steady from 69.00 to 70.00.

The pork carcass cutout value was .91 lower at 81.73 FOB plant.

Hogs and pigs in the U.S. on June 1 were up 9% on the year and slightly more than pre-release estimates. The quarterly hogs and pigs report was released after the close of trade and does look bearish for cash and futures prices.

The weekly hog kill was estimated at 2,143,000 head, 8,000 more than last week and 233,000 greater than last year.

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