Market News

Packers appear short bought

The new cattle showlists distributed on Monday appear to be generally larger than last week. A few asking prices have been suggested around 148.00 in the South and 236.00 in the North. Packers appear to be generally short bought, and some business could develop as early as midweek. The kill totaled 108,000 head, 2,000 less than last week, but even with a year ago.

Boxed beef cutout values were firm to higher on moderate to fairly good demand and moderate offerings. Choice beef was up 1.57 at 232.27, and select was .65 higher at 228.88.

Chicago Mercantile Exchange live cattle contracts settled unchanged to 132 points lower. The August contract would move into positive territory, before settling unchanged, mindful of cash premiums and ideas that the market corner often turns in late July or early August. The deferred contracts were under the most pressure checked by the larger than expected feeder pool outside of feedlots as of July 1. August at 143.02 was unchanged, and October was .15 lower at 143.97.

Feeder cattle settled 92 to 175 points lower pressured by spillover selling from the live market and reports of struggling demand for replacement cattle in the country. The big break in corn prices did help most feeder contracts to bounce off their early session lows. August was down .92 at 208.75, and September was 1.17 lower at 206.37.

Feeder cattle receipts at the Oklahoma National Stockyards totaled 4,000 head Monday. Feeder steers and heifers opened mostly 5.00 lower on comparable sales. Not enough calves for an opening trend. 700 to 750 pound yearling steers traded from 215.50 to 228. 650 to 700 pound heifers 208.00 to 214.00

Lean hogs were mostly 12 to 85 points lower with just a couple of 2016 contracts higher. Midsummer fundamentals remain uninspiring. Without improvement in cash hog values, attention easily drifts into concern and anxiety over the overly large supplies through the last third of 2015. August was down .15 at 77.52, and October was .47 lower at 63.55.

Barrows and gilts in the Iowa/Minnesota direct trade closed 1.39 lower at 74.14 weighted average on a carcass basis, the West was down 1.46 at 73.83, and nationally the market was 1.14 lower at 73.16. Missouri direct base carcass meat price was steady to 1.00 lower from 70.00 to 71.00. Midwest hogs on a live basis were steady to 1.00 lower from 46.00 to 60.00.

The pork carcass cutout value was up .20 FOB plant at 84.86 in the afternoon report.

Last week’s increase in hog slaughter, back over 2.1 million head argues again suggestions that summer supplies have not yet bottomed. Greater pork tonnage could make it tough to sustain last week’s firming in carcass value.

The Monday hog kill was estimated by USDA at 421,000 head, 37,000 more than last week, and 28,000 greater than last year.