Market News

Cattle futures continue to rally

The cash cattle market remained very quiet on Tuesday afternoon with bids and asking prices few and far between. DTN is reporting they have heard of a few cattle in the South priced at 130.00, but country ideas may firm further if futures continue to recover. At any rate significant trade volume may be delayed until late in the week.

The cattle kill was estimated at 114,000 head, 1,000 more than both a week and a year ago.

Boxed beef cutout values were lower on choice and steady on select on light to moderate demand and offerings. Choice beef was down 1.64 at 218.57, and select was up .15 at 210.38.

Chicago Mercantile Exchange live cattle contracts settled 125 to 215 points higher. Triple digit gains held through the close after firm follow-through support developed on Monday. The ability to spark increased commercial support brought some additional trade interest back to the market, but traders remained uncertain just how much additional price support can develop before the end of the month.

Feeder cattle ended the session 55 to 192 points higher as sharp gains redeveloped through the market on Tuesday, creating a two day rally which helped to bring additional strong support into the market.

Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 8500 head. Compared to last week, feeder steers and heifers were 1.00 to 4.00 lower. Steer and heifer calves were steady to 3.00 lower. Stocker cattle were lightly tested with last week, with some cattle selling sharply higher than a week ago. The demand was moderate to good and definitely improved from the open, Cattle buyers were a little uneasy after another week of sharply lower cattle futures and the sharp declines in cash slaughter prices. Feeder steers medium and large 1 averaging 723 pounds brought 147.37 per hundredweight. 723 pound heifers brought 137.00.

Lean hogs settled 10 to 62 points lower. The market was mixed for most of the session with traders backing away from earlier pressure, but were still unwilling to move into the complex. Some far deferred 2017 contracts did close unchanged to higher and that did help to draw some buyer support back into the complex late in the day.

Barrows and gilts in the Iowa/Minnesota direct trade closed 1.04 higher at 67.70 weighted average on a carcass basis, the West was up 1.14 at 67.61, and nationally the market was 1.31 higher at 66.47. Missouri direct base carcass meat price was steady from 55.00 to 61.00. Midwest hogs on a live basis were steady to 2.00 higher from 40.00 to 50.00.

The pork carcass cutout value was up 1.24 at 81.92 FOB plant. All cuts except hams and bellies showed significant gains.

Despite last week’s big hog kill, the next several weeks are expected to feature lower slaughter levels ranging mostly between 2.11 million and 2.16 million head.

Tuesday’s hog slaughter was estimated at 234,000 head, the same as last week, but 7,000 greater than last year.

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