Market News

Midday livestock markets

Packer inquiry into the cattle remains very light on Wednesday with just a few scattered bids in the South at 118.00 Another round of sharply higher futures is no doubt causing both sides to rethink cash potential. Some asking prices have been suggested around 127.00 in the South. Live and feeder futures are sharply higher thanks to aggressive short covering and further signals of only modest delivery interest.

Boxed beef cutout values are lower, choice is down .81 at 203.36, and select is down 1.13 at 197.74.

Feeder cattle receipts at the Philip Livestock Auction at Philip, South Dakota totaled 5736 head on Tuesday, Compared to last week feeder steers weighing 900 to 950 pounds were steady, other classes were not well compared. Feeder heifers weighing 850 to 1,000 pounds trended 8.00 to 10.00 lower, there was not a good comparison on other classes. There was very good demand for a long string of yearling steers and many long strings, load lots and packages of spring calves which all sold on a very strong active market. Feeder steers medium and large 1 weighing 578 pounds averaged 210.10 per hundredweight. 565 pound heifers brought 180.09.

Barrows and gilts in the Iowa/Minnesota direct trade are .33 higher at 71.34 weighted average on a carcass basis, the West is up .23 at 71.23, and nationally the market is down .51 at 70.57. Missouri direct base carcass meat price is steady at 64.00. Midwest hogs on a live basis are steady to 1.00 higher from 46.00 to 60.00.

The pork carcass cutout value is down .66 at 86.37 FOB plant.

The spread between wholesale beef and pork has narrowed significantly over the last 30 days, and pork seems unlikely to gain more ground through the fourth quarter.

There’s a reason that October is designated as “Pork Month.” Pork demand typically struggles as commercial production increases.