Market News

Cattle trade was limited

The cash cattle trade remained limited to parts of the North from 140.50 to 142.00 live and 222.00 to 225.00 dressed. Asking prices are not well defined, but probably around 146.00 to 148.00 in the South and 228.00 plus in the North. Significant trade volume may be delayed, but packers will try hard to complete procurement before Friday and the long holiday weekend. The kill totaled 109,000 head, 1,000 more than last week, but 9,000 below a year ago.

Boxed beef cutout values were steady on choice and lower on select on light to moderate demand and offerings. Choice beef was down .24 at 240.97, and select was 1.41 lower at 229.03.

Chicago Mercantile Exchange live cattle contracts settled 30 points lower to 47 higher. Futures bounced higher and lower through the morning with wide price swings limiting trade activity. The far deferred contracts were higher while the front months were lower as traders looked for additional direction from the outside markets. October settled .10 lower at 141.22, and December was down .30 at 143.30.

Feeder cattle contracts settled 47 to 160 points higher. Feeder futures jumped higher after posting sharp losses earlier in the session. The reversal in buyer interest helped to distance the current prices from setting new lows, which was a concern through most of the morning. September was up .47 at 200.75, and October ended .97 higher at 196.30.

Feeder cattle receipts at the Ozarks Regional Stockyards at West Plains, Missouri totaled 1641 head on Tuesday. Compared to the previous week, feeder steers over 500 pounds and heifers traded steady to 5.00 higher. Steers under 500 pounds sold uneven from 4.00 lower to 4.00 higher. Yearling steers and heifers traded steady to 4.00 lower in a light market. Demand was good on a light supply. Feeder steers medium and large 1 weighing 837 pounds brought 192.39 per hundredweight. 568 pound heifers traded at 212.93.

Lean hog contracts settled 20 to 180 points higher. Strong triple digit gains held in the nearby contracts with traders focused on the ability for the recent market pressure seen in lean futures to create some follow through momentum as traders looked for more support in the near future. Supporting pork values is likely to maintain buyer interest for the near term, and potentially help draw additional activity following the Labor Day holiday. October settled 1.80 higher at 69.77, and December was up 1.70 at 64.67.

Barrows and gilts in the Iowa/Minnesota direct trade closed 1.22 lower at 71.50 weighted average on a carcass basis, the West was down 1.24 at 71.27, and the national market was 1.27 lower at 70.80. Missouri direct base carcass meat price closed steady to 1.00 lower from 62.00 to 64.00. Midwest hogs on a live basis were steady to 600 lower from 44.00 to 52.00.

The pork carcass cutout value was down .23 at 85.94 FOB plant.

The fact that hog buyers are developing a consistent pattern of buying live inventory lower and lower fits well with conventional assumptions the country supplies will steadily increase over the next 60-90 days.

Wednesday’s hog kill was estimated at 428,000 head, 2,000 more than last week, and 14,000 more than last year.