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Cattle futures close off the day’s lows

Cattle country was quiet on Monday afternoon following the distribution of this week’s showlists. Ready numbers appear to be generally larger than last week. Asking prices are not established and may remain that way until Thursday or Friday. The kill totaled 113,000 head, 3,000 greater than last week, and a year ago.

Boxed beef cutout values were sharply lower on choice and steady on select on light to moderate demand and heavy offerings. Choice beef was down 2.26 at 219.57, and select was .23 lower at 199.38.

Chicago Mercantile Exchange live cattle contracts settled 135 to 230 points lower with June and August down the most. There was potential for late day pressure to expand that could have pushed nearby contracts to limit losses, but that did not happen and contracts actually finished off the day’s lows.

Feeder cattle settled 65 to 157 points in the red as traders sought additional support but were unable to find any. The pressure in grain markets kept feeder cattle losses trimmed, but the general lack of support in the market continued through the end of the session, and potentially during much of this week’s trade.

Feeder cattle receipts on Monday at the Joplin, Missouri Regional Stockyards totaled 3,493 head. Compared to last week, steer and heifer calves were 10.00 to 12.00 lower. Yearlings trended 5.00 to 10.00 lower. The demand and supply was moderate to light. Slaughter steers and heifers traded sharply lower last week, cattle futures have continued their downward trend adding pressure to the feeder cattle. Feeder steers medium and large 1 averaging 736 pounds traded at 138.62 per hundredweight. The 772 pound heifers brought 128.25.

Lean hogs settled narrowly mixed from 25 higher to 22 points lower. Even though bearishness held in most other commodity markets, the continued support across the hog market is the bright spot for traders, drawing even more support back into the complex.

Barrows and gilts in the Iowa/Minnesota direct trade closed .64 higher at 81.34 weighted average on a carcass basis, the West was up .47 at 81.08, and nationally the market was .22 higher at 80.03. Missouri direct base carcass meat price was steady from 68.00 to 73.00. Midwest hogs on a live basis were steady to 1.00 higher from 48.00 to 58.00.

The pork carcass cutout value was up .20 at 87.90 FOB plant. Only the picnics and loins were moderately higher.

With the June 1 hogs and pigs report set for release on Friday, a large wave of commercial selling could be seen this week at the Chicago Mercantile Exchange, especially given the boards rally over the last thirty days.

The hog slaughter was estimated at 425,000 head, 2,000 less than last week, but 11,000 more than last year.

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