Market News

Northern cattle $4.00 to 6.00 lower

USDA Mandatory reported cattle trading in Nebraska was moderate on light to moderate demand. Compared to last week dressed sales were. 4.00 to 6.00 lower at 228.00. A few live sales were 4.00 to 5.00 lower from 144.00 to 145.00. Western Corn Belt trading was limited on light to moderate demand, a few live sales were noted at 144.00, and a few dressed sales from 227.00 to 228.00, there were not enough sales for a market trend. Southern sales had not developed by midafternoon. The weekly kill was estimated at 545,000 head, 5,000 more than the previous week, but 43,000 less than last year.

Boxed beef cutout values were lower on choice and steady on select on light demand and offerings. Choice beef was down .99 at 243.22, and select was .17 lower at 232.95.

Chicago Mercantile Exchange live cattle contracts settled 57 to 187 points higher as firm buyer support shifted back into the complex as traders focused on the push higher in feeder cattle futures as well as the bounce off the lows earlier in the week. The main features of the market were late month profit taking and short covering. August settled 1.87 higher at 146.52, and October was up 1.42 at 143.97.

Feeder cattle settled 110 to 215 points higher. Strong triple digit gains entered the market with nearby contracts over 2.00 per hundredweight higher. The lack of resistance at the end of the week allowed buyers to quickly return to the market, and that brought nearby contracts over $4.00 per hundredweight higher form the recent lows. September feeders settled at 202.40 up 2.05, and October was up 1.85 at 198.92.

Feeder cattle receipts at Missouri auctions this week totaled 18,317 head. Compared to the previous week, calves sold 10.00 to 15.00 lower and yearlings were 5.00 to 10.00 lower. The week began on a seriously depressing note as stock markets tumbled due to fears about the stability of the global economy. This spilled over into grain and cattle markets and every financial industry and sector. Fundamentals of supply and demand took a back seat and have been overshadowed by an overall nervousness which isn’t easy to overcome. Despite sharply lower prices at auctions several producers continued to market cattle and the supply was light to moderate. Feeder steers medium and large 1 averaging 628 pounds traded at 227.21 per hundredweight. 626 pound heifers brought 206.68.

Lean hogs settled mixed from .62 lower to 40 points higher. The lack of support in cash hog prices did not appear to limit traders stepping cautiously back into the market at the end of the week. It is likely that late day moves were tied to end of the week positioning than any shift in the overall complex. October settled .62 lower at 66.42, and December was unchanged at 62.05.

Barrows and gilts in the Iowa/Minnesota direct trade closed 1.10 lower at72.20 weighted average on a carcass basis, the West was down 1.53 at 71.58, and the Eastern market did not have a price comparison at 71.23. Missouri direct base carcass meat price was steady to 1.00 lower at 67.00.

The pork carcass cutout value was down .16 at 84.53 FOB plant.

The ability of hog buyers to generate significant country receipts testifies to the seasonal reality that live supplies are ramping up.

The weekly hog slaughter was estimated at 2,214,000 head, 12,000 less than last week, but 227,000 head more than last year.