Market News

Cash hogs and cattle trade lower

The cattle trade was pretty well wrapped up by Friday afternoon, but USDA Mandatory reported there was a light trade in Iowa on moderate demand with a few dressed sales at 205.00 with some having greater than a two week delivery. In Eastern Nebraska a few dressed sales sold from 198.00 to 202.00. Trade remained slow on light to moderate demand in the Northern Plains. The Southern trade was completed for the week with cattle selling from 122.00 to 125.00, $5.00 to 9.00 lower than the previous week. The weekly cattle kill was estimated at 586,000 head, 1,000 smaller than the previous week, but 61,000 above 2015.

Boxed beef cutout values were lower on light to moderate demand and offerings. Choice beef was down .65 at 222.07, and select was 1.69 lower at 201.57.

Chicago Mercantile Exchange live cattle contracts settled 45 to 107 points higher as firm gains held across the complex on Friday, although the gains backed off from the session highs at midday. Trade volume was relatively weak at weeks end. The focus was on the potential beef movement through the holiday weekend and that allowed traders to wait until well into next week before stepping back into the complex and reevaluating the market.

Feeder cattle ended the day 70 to 172 points in the black. Light to moderate gains held, although the focus continued on squaring positions before the long holiday weekend rather than expanding trade activity.

Feeder cattle at Missouri auctions this week totaled 30,691 head. Compared to the previous week, feeder steers and heifers sold mostly weak to 10.00 lower. The increased placements in the monthly cattle on feed report indicate there will be additional cattle available on a long term basis causing traders to become uneasy that demand may be waning with the increased supply. After futures declined so quickly, followed by beef cuts and other prices, buyers in the sale barns continued the trend. They looked at the cattle more closely and made sure they did not give any more than they had to give. Feeder steers medium and large 1 weighing 623 pounds averaged 158.09 per hundredweight. 622 pound heifers averaged 140.24.

Lean hogs closed mixed 20 points lower to 65 points higher with moderate losses evident from June through October while gains held in the deferred contracts. The lack of long term market direction continued through the end of the session as traders waited to see how much weekend clearance takes place before stepping back in the market.

Barrows and gilts in the Iowa/Minnesota direct trade closed .34 lower at 73.21 weighted average on a carcass basis, the West was down .24 at 73.11, and nationally the market was .57 lower at 72.20. Missouri direct base carcass meat price was steady from 64.00 to 68.00.

The pork carcass cutout value was down .01 at 83.56 FOB plant. Bellies and ribs were moderately higher.

Feeder pig receipts nationally this past week were 78,900 head. Early weaned pigs were 4.00 per head lower, and all feeder pigs were down 2.00 per head. The demand was light to moderate for moderate offerings. Early weaned pigs 10-12 pound basis ranged from 14.50 to 38.00 per head. 40 pound pigs from 51.00 to 72.00.

The weekly hog kill was estimated by USDA at 2,181,000 head, 67,000 greater than last week, and 325,000 more than last year.