Market News

Bids and asking prices are far apart

Buying interest in the feedlot cattle trade remained limited on Wednesday afternoon, there is a wide spread between asking prices and bids. Private sources are reporting a few bids at 123.00 live in the South, and in the North with dressed at 192.00. While asking prices are not well defined a few have been heard of at 130.00 live and 205.00 dressed. The kill was estimated at 111,000 head, 1,000 more than last week, but 4,000 less than last year.

Boxed beef cutout values were sharply lower on light demand and moderate to heavy offerings. Choice beef was down $3.76 at 214.81, and select was 4.79 lower at 205.59.

Chicago Mercantile Exchange live cattle contracts settled 37 to 95 points lower. Light support trickled into the live cattle market in the opening minutes of trade, but it quickly turned into a defensive affair through the entire live cattle complex with triple digit losses at one point in the trade. The market did close off the day’s lows. The losses were attributed to follow through pressure in the beef values and that lead to increased concerns of additional cash market and longer term pressure through the complex.

Feeder cattle ended the day mostly lower from down 80 to up 15 points in just a couple of months. The losses were driven by the combination of pressure in the live cattle trade and deferred feeder cattle pressure.

Feeder cattle receipts at the Ozark’s Regional Stockyards at West Plains, Missouri totaled 1983 head on Tuesday. Compared to last week, steer calves traded steady to 5.00 lower, heifer calves were uneven from 3.00 lower to 5.00 higher. Yearling steers and heifers were not well tested but the undertone was steady to weak. Demand was good on a light to moderate supply. Feeder steers medium and large 1 averaging 568 pounds brought 188.35 per hundredweight. 567 pound heifers traded at 149.37.

Lean hogs closed 25 to 177 points higher with triple digit gains in the May through October contracts. The focus between unwinding cattle hog spreads over the last several trading session has continued to develop with the aggressive morning pressure in cattle adding even more support to the lean hog complex.

Barrows and gilts in the Iowa/Minnesota direct trade closed 1.74 higher at 69.43 weighted average on a carcass basis, the west was up 1.70 at 69.30, and the national hogs were 1.88 higher at 68.36. Missouri direct base carcass meat price closed steady from 55.00 to 61.00. Midwest hogs on a live basis were steady from 40.00 to 50.00.

The pork carcass cutout value was up .20 at 82.02. All cuts were higher except the belly primal was down 4.81.

The pork carcass value surged over $81 Tuesday with significantly better demand noted on retail cuts, picnics, and ribs. With product sales appreciating at a faster rate than live costs, processing margins continue to look extremely attractive.

The hog kill was estimated at 433,000 head, 1,000 less than last week, and up 7,000 from; last year.