Market News

Livestock futures close significantly higher

Cattle country was at a virtual standstill on Tuesday with only a few starter bids evident in Kansas at 143.00 live. Some asking prices are around 148.00 in the South and 236.00 in the North. Given last week’s limited trade volume, cattle buying interest could pick up as early as Wednesday. It is always difficult to predict packer appetite, even when processors look short on paper. The kill was estimated at 110,000 head, 3,000 smaller than last week, and 4,000 less than a year ago.

Boxed beef cutout values were steady on moderate demand and offerings. Choice boxed beef was down .12 at 232.15, and Select was 01 lower at 228.87.

Chicago Mercantile Exchange live cattle contracts settled 157 to 282 points higher. Triple digit gains held through the complex with the nearby fall contracts leading the move higher. Talk of a seasonal market bottom no doubt gained some traction. August was up 2.02 at 145.95, and October was 2.82 higher at 146.50.

Feeder cattle ended the session 165 to 250 points higher. Feeder futures were the main focus of the entire surge higher in the cattle complex. There was growing support based on the firmness in beef values over the last couple of days, and also on the expectation that seasonal support is likely to be seen in the market over the next couple of weeks. August settled 2.50 higher at 211.25, and September was up 2.10 at 208.47.

Feeder cattle receipts at the Oklahoma National Stockyards on Monday were seasonally light at just 3798 head. Compared to last week, feeder steers and heifers traded mostly 5.00 to 10.00 lower. There were not enough steer and heifer calves for a trend, but a lower undertone was noted. Buyer demand was light to moderate following the live and feeder cattle futures contracts closing lower for four consecutive days last week. Quality was mostly plain to average. Feeder steers medium and large 1 averaging 767 pounds traded at 213.15 per hundredweight. 676 pound heifers brought 207.06.

Lean hogs settled 10 to 195 points higher. Moderate to strong gains developed through the complex as the aggressive support seen in the cattle complex helped to create some additional and renewed interest in all meat markets. The triple digit gains were confined mainly in the nearby contracts. Direct trade hogs were higher in the morning report and that leant additional support to futures. August was up 1.95 at 79.47, and October was up 1.50 at 65.05.

Barrows and gilts in the Iowa/Minnesota direct trade were 2.25 higher at 76.40 weighted average on a carcass basis, the West was up 2.04 at 76.17, and nationally the market was 1.56 higher at 74.76. Missouri direct base carcass meat price was steady from 70.00 to 71.00.

The pork carcass cutout value was 135 higher FOB plant at 86.21.

Barrow and gilt carcass weights for the week ending July 11 averaged 209 pounds, a pound heavier than the previous week but 1 pound lighter than a year-ago. Over the past six weeks dressed weights have averaged 209.2 pounds, 2.3 pounds lighter than the same six week period in 2014. Weights are forecast to trend sideways to lower into August.

The Tuesday hog kill was estimated by USDA at 424,000 head. 2,000 greater than last week, and 18,000 more than a year ago.