Market News

Cattle futures close higher

Cattle country was quiet following the distribution of the new showlists. Ready numbers appear to be larger in Nebraska and Texas, somewhat smaller in Colorado and Kansas, but generally steady over the larger area. A few showlists have been priced around 150.00 in the South and 240.00 in the North. Significant volume will probably be delayed until Wednesday or Thursday. The Monday kill was estimated at 113,000 head, 5,000 more than last week, but 5,000 less than last year.

Boxed beef cutout values were steady to firm on light to moderate demand and light offerings. Choice boxed beef was up .10 at 253.32, and select was .49 higher at 248.64.

Strong triple digit gains developed in the live cattle contracts on the Chicago Mercantile Exchange on Monday. Traders continued to focus on the losses seen last week, and the potential to cover positions at the end of the month. Fundamentals have not changed, but there seems to be very little significance to push prices aggressively higher over the coming days. June settled 1.40 higher at 149.80, and August was 1.97 higher at 150.00.

Firm buyer support jumped back into the feeder cattle futures as live cattle contracts have become the driver, and sparked some short covering in the lightly traded session. It is expected activity will remain light through most of the week, which may help draw additional buyer interest back into the seemingly oversold market. August futures finished 1.95 higher at 219.20, and September was up 1.97 at 217.87.

Feeder cattle receipts at the Joplin Regional Stockyards on Monday totaled 5,000 head. Compared to last week, steer and heifer calves opened steady to weak, and yearlings were weak to 3.00 lower. Demand for feeders’ is good and the supply is moderate. Feeder steers medium and large 1 weighing 500 to 600 pounds traded from 255.00 to 291.00. 5 to 6 weight heifers brought 231.00 to 244.00 per hundredweight.

Mixed trade was evident in the lean pit with the nearby contracts holding moderate losses following the rally in hog numbers in Friday’s hogs and pigs report. Triple digit gains were seen in the deferred contracts as the expectations that farrowing’s will ease through the next several months and should tighten up supplies over the long term. July settled .80 lower at 74.65, and August was down .85 at 71.97.

Barrows and gilts in the Iowa/Minnesota direct trade closed .47 higher at 74.63 weighted average on a carcass basis, the West was up .53 at 74.58, and nationally the market was .53 higher at 73.52. Midwest hogs on a live basis were steady from 47.00 to 60.00.

The pork carcass cutout value was 1.18 higher FOB plant at 82.91. Bellies and ribs were both over 3.00 higher.

The June 1 hog inventory released on Friday confirmed a smaller than expected breeding herd and more modest summer and fall farrowing intentions. Such surprising news should help support deferred lean futures early this week.

Monday’s hog kill was estimated by USDA at 424,000 head, 7,000 greater than last week, and 19,000 more than last year.

 

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