Market News

Cattle futures stage comeback

USDA Mandatory reported negotiated cash cattle trade in Texas was light on moderate demand with live sales at 150.00. In Kansas trading was moderate to active on good demand. Compared to last week Kansas live sales are 2.00 higher at 150.00. Trading in Nebraska and Colorado was moderate on moderate demand with live sales from 151.00 to 153.00. In Eastern Nebraska a few dressed sales at 240.00, however most producers continued to pass current bids. Trading in Iowa was light on moderate demand with a few live sales at 153.00. The cattle kill was estimated at 111,000, 7,000 more than last week, and 6,000 less than last year.

Boxed beef cutout values were steady to weak on light to moderate demand and moderate offerings. Choice beef was down .44 at 259.29, and select was .09 lower at 249.26.

Live cattle contracts hit daily trading limits after staging a comeback after yesterday’s losses. The aggressive nature of the market combined with firming cash market support and pre-holiday light volume sparked a wild ride across the cattle market on Wednesday. August was up 3.00 at 151.07, and October was also 3.00 higher at 153.70.

Feeder cattle futures regained much of the limit down losses seen on Tuesday, but off the day’s highs. The fact that feeder futures had expanded limits through the trading session, created the opportunity to push markets significantly higher than they were before the sharp end of the month sell off. August was up 3.42 at 218.50, and September was 3.20 higher at 216.00.

Feeder cattle receipts at the Ozarks Regional Stockyards at West Plains, Missouri totaled 2991 head on Tuesday. Compared to last week, feeder steers traded steady to 4.00 higher with feeder heifers uneven from 3.00 lower to 3.00 higher. Yearling steers and heifers traded 5.00 to 10.00 lower. Demand was moderate in a bearish market as feeder cattle futures closed down the limit, with corn contracts going in the opposite direction. Feeder steers medium and large 1 averaging 933 pounds traded at 202.03 per hundredweight. 719 pound heifers brought 213.65.

Lean hogs were mixed as traders once again went back to previous market activity with the nearby summer contracts trading in an opposite direction than deferred issues. The focus remained directed on adjusting short term activity based to cash markets, while adjustments are still being made surrounding the potential supplies through the end of the year and early 2016. July was up 1.05 at 77.25, and August .77 higher at 75.15.

Barrows and gilts in the Iowa/Minnesota direct trade closed .18 lower at 74.56 weighted average on a carcass basis, the West was down .09 at 74.52, and nationally the market was .66 lower at 73.19. Missouri direct base carcass meat price was steady from 69.00 to 70.00. Midwest hogs on a live basis closed steady to 1.00 lower from 47.00 to 55.00.

The pork carcass cutout value FOB plant was up .03 at 81.47.

A dramatic shift in market psychology in the corn market could have a significant impact on both cattle, hog, and chicken expansion. The threat of substantially higher corn prices could work to check carcass weights and challenge the wisdom of long-term production growth.

Wednesday’s hog slaughter was estimated by USDA at 423,000 head, 5,000 greater than last week, and 8,000 more than last year.