Market News

Cattle trade remains slow

The cash cattle trade remains slow following Wednesday’s light to moderate round of business. DTN is reporting a few cattle selling in Kansas at 120.00. There are a few bids in Texas at 118.00 live and 117.00 in Nebraska, dressed bids in the North are at 190.00. Bids continue to slide in the face of defensive futures and cutouts. Some asking prices are around 130.00 plus in the South, and 193.00 to 195.00 in the North. More business should need to develop later today or Friday. The kill was estimated at 112,000 head, 1,000 less than last week and even with last year.

Chicago Mercantile Exchange live cattle contracts settled 62 points higher to 327 lower with June through December contracts showing gains. The front month October continued to lead the market lower. The market was concerned with delivery issues and heavy cattle weights at the same time as cash values continued to trend lower. Deferred issues bounced all over the board during the session, ranging from moderate gains to firm losses. October settled 3.27 lower at 121.40, and December was down .92 at 130.00

Feeder cattle contracts settled mixed from 77 higher to 77points lower. The early support that slowly developed through the complex helped temporarily push contracts firmly higher. But the support was short lived as traders quickly returned to triple digit losses as they focused on the sharp losses in front month October live cattle futures. The market turned around some near midday and left the deferred issues higher. October was down .77 at 177.40, and November was down .47 at 172.12.

Feeder cattle receipts at the Hub City Livestock Auction at Aberdeen, South Dakota totaled 2915 head. Compared to last week’s much lighter offering, the best comparison on steers 900 to 950 pounds 2.00 to 5.00 lower. 951 to 1,000 pound steers were steady to 4.00 lower. There was not a good comparison on heifers. There was moderate to good demand on the yearling offering which sold on a moderate market. Feeder steers medium and large 1 averaging 977 pounds traded at 179.55 per hundredweight. 979 pound heifers averaged 165.00.

Lean hogs ended the session 75 points higher to 2.22 lower. Moderate to strong pressure was evident in the nearby contracts as recent gains were checked. Some shifts in the market were associated with the move to the month of October, but most of the trade seemed based on the ability to square positions following the recent rally. The firm support in pork values and the ability to continue to move product would point to buyers moving back into the market over the next few days. October settled .90 lower at 72.65, and December was down 2.20 at 64.52.

Some hog reports were delayed due to technical difficulties. Barrows and gilts in the Iowa/Minnesota direct trade in the morning were .09 lower at 71.41 weighted average on a carcass basis, the West was up .06 at 71.01, and nationally the market was .74 lower at 69.92. Missouri direct base carcass meat price closed steady to 1.00 higher at 63.00. Midwest hogs ended steady to 1.00 higher on a live basis from 44.00 to 56.00.

For the week ending September 26, Iowa barrows and gilts averaged 279.7 pounds, 0.8 pound heavier than the week before but still 4.9 pounds lighter than 2014.

The hog kill was estimated at 433,000 head, up 8,000 from last week, and 10,000 greater than last year.

Meat prices were also delayed.