Market News

Packers short bought

The pre-holiday feedlot cattle offering appears to be mixed, somewhat larger in Nebraska, Kansas and Colorado, but smaller in Texas. Packers would appear to be short bought, and it will be interesting to see if they complete procurement efforts before breaking for thanksgiving. A few asking prices have been suggested around 132.00 in parts of the South. But generally speaking feedlot managers have not said much in that regard. The kill totaled 112,000 head, 6,000 more than last week, and 2,000 smaller than 2014.

Boxed beef cutout values were weak on choice and steady on select on light to moderate demand and moderate offerings. Choice boxed beef down .35 at 202.79, and select was up .10 at 191.50.

Live cattle contracts settled 65 to 147 points higher on the Chicago Mercantile Exchange on Monday. The front months saw triple digit gains and at one point tested daily trading limits of $3.00 per hundredweight. The light trade volume allowed for the volatile market shifts to be evident through the market. December settled 2.47 higher at 132.17, and February was up .27 at 134.20.

Feeder cattle ended the session 75 to 175 points higher Sharp triple digit gains developed into the lightly traded complex following the strong surge in live cattle contracts. No change developed in either the fundamentals or technical market direction, but the lack of seller interest in the light activity allowed for buyer interest to be unchecked. Market volatility may be seen through the remainder of the week. January settled 1.75 higher at 165.40, and March was up 1.45 at 163.47.

The Southwest Missouri Show Me Select Replacement heifer Sale (SMS) was held at the Joplin Regional Stockyards On Friday. 293 head of replacement bred heifers sold. Heifers in the offering were in the 2nd and 3^rd stage of pregnancy, the demand was very good and all prices were strong compared to the decline in the cattle industry as a whole, with a capacity crowd on hand. The sale average for the offering was $2,477.00 which was $412.00 less per head than the November 2014 sale. The top selling lot brought $3,200.00.

The SMS program was started to improve calving ease and reduce death loss of heifers and their calves. Now improved genetics boosts market value of both heifers and steers in the herd.

Lean hogs settled 32 higher to 37 lower with only the far deferred issues closing higher. Trade volume was light and traders were firmly planted in the market, but unable to draw aggressive buyer support into the market. December settled unchanged at 57.45, and February was down 05 at 58.27.

Barrows and gilts in the Iowa/Minnesota direct trade closed .16 lower at 51.91, Western markets were down .05 at 51,86, and the national market was .22 lower at 50.79.Missouri direct base carcass meat price closed 2.00 higher 44.00. Midwest hogs on a live basis were steady from 29.50 to 40.00.

The pork carcass cutout value is down .84 at 72.30 FOB plant.

Hog supplies are still seen as a burdensome as last week’s slaughter hog production was estimated at 2.400 million head. That is the largest production this year and the largest since the 2.402 that was seen the week ending September 22, 2012. This was the third largest production week in history.

The hog slaughter was estimated at 440,000 head, 2,000 greater than last week, and 4,000 more than 2014.