Market News

Feeder futures were sharply lower

There were a few scattered bids in the cattle reported by private sources at 143.00 to 144.00 live and 222.00 dressed, but most of cattle country remains very quiet. Some early asking prices have been suggested around 148.00 to 150.00 in the South and 232.00 plus in the North. Significant trade could once again be delayed until late in the week. The kill totaled 110,000 head, 1,000 more than last week, but 8,000 less than last year.

Boxed beef cutout values were lower on light to moderate demand and moderate to heavy offerings. Choice beef was down 1.03 at 241.21, and select was 1.60 lower at 230.44.

Chicago Mercantile Exchange live cattle contracts settled 95 to 207 points lower. The lack of strong support in in boxed beef values was not a surprise to the overall market, but the aggressive widespread pressure through most commodity and financial markets led to consistent and concise pressure through the entire market. October settled 1.87 lower at 141.32, and December was down 1.80 at 143.62.

Feeder cattle futures ended 155 to 380 points lower and led the entire cattle complex lower. The focus in the cattle markets was driven by outside market pressure as strong triple digit losses were seen in the Dow Jones Index while energy and grain markets turned aggressively lower. September was down 1.55 at 200.27, and October was 2.55 lower at 195.32.

Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 6510 head. Compared to last week, feeder steers and heifers trended steady to 2.00 higher. Feeder calves were mostly steady, with the exception of the 400 to 450 pound cattle which traded 10.00 to 15.00 higher. Renewed confidence and recovery in the financial markets has helped stabilize buyer demand and allowed the market to begin to gain back last week’s losses. Feeder steers medium and large 1 averaging 718 pounds averaged 213.36 per hundredweight. 733 pound heifers brought 196.06.

Lean hogs settled 5 to 65 points lower. Despite the downward turn in most commodity and financial markets the lean hog futures held in fairly well. Because of support in pork values and deferred market strength the market traded higher until closing moderately lower. The fact that futures were able to trade near unchanged price levels was impressive to the trade. October settled .05 lower at 67.97, and December was down .65 at 62.97.

Barrows and gilts in the Iowa/Minnesota direct trade closed .87 lower at 72.50 weighted average on a carcass basis, the West was down .98 at 72.26. The East was not reported due to confidentiality, but the five day rolling average was 71.23. Missouri direct base carcass meat price was steady to 2.00 lower at 64.00. Midwest hogs were steady to 1.00 lower from 44.00 to 58.00.

The pork carcass cutout value was up .33 at 86.17 FOB plant.

Given the strong seasonal tendency of hog slaughter and pork production to mount over the next three months, it’s far too early to say that lean hog futures have bottomed.

The Tuesday hog kill was estimated at 428,000 head, up 7,000 from last week and 15,000 greater than last year.