Market News

A few cattle trade in Kansas

DTN reported a few deals on the cattle in parts of Kansas at 116.00 to 117.00, sharply lower than last week’s weighted average of 121.09. Some scattered bids of 116.00 live have been reported in Nebraska, but in most areas asking prices remain very sketchy. Significant trade will probably wait until the end of the week. The kill totaled 113,000 head, even with last week, but 1,000 less than last year.

Boxed beef cutout values were lower on light to moderate demand and heavy offerings. Choice beef was down 1.42 at 218.15, and select was 1.17 lower at 198.21.

Live cattle contracts on the Chicago Mercantile Exchange settled 40 to 120 points higher. Firm gains held following a surge of buyer support that redeveloped in feeder cattle markets. There still is a lot of uncertainty surrounding market fundamentals, but the lack of support in grain markets is changing the cost to feed cattle, helping to draw buyers back into the market.

Feeder cattle closed 32 to 265 points higher. Aggressive triple digit gains stepped back into the complex following a lack of trade activity through most of the morning. The sharp double digit losses in the grain complex was the main focus of feeder cattle buying. The recent support may be limited depending on the moves in outside commodity markets and other grain futures trade through the end of the week and last half of June.

Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 5300 head. Compared to last week, feeder steers and heifers trended 2.00 to 6.00 lower. The demand was moderate to good for feeder cattle as cattle futures continued lower on Monday. Steer and heifer calves were lightly tested and a few were 10.00 to 15.00 lower. Feeder steers medium and large 1 weighing 777 pounds brought 140.86 per hundredweight. 719 pound heifers traded at 132.98.

Slaughter cattle receipts at the Manchester, Iowa Livestock Auction totaled 614 head on Tuesday. Beef steers and heifers were $8.50 lower than last week. Holstein steers were $5.00 lower. High yielding prime and choice steers and heifers ranged from 120.00 to 124.50. Holstein steers brought 112.00 to 116.50.

Lean hogs finished mostly lower from unchanged to down .47. Trade volume remained extremely light, and this kept prices in a narrow range. The lack of market shifts through the entire complex did allow for some late day buyer support to redevelop, but the overall tone of the market is likely to remain unchanged over the near future.

Barrows and gilts in the Iowa/Minnesota direct trade closed .75 higher at 82.06 weighted average on a carcass basis, the West was up .93 at 81.99, and nationally the market was 1.10 higher at 81.14. The Missouri direct base carcass meat price was steady to 1.00 higher from 68.00 to 74.00. Midwest hogs on a live basis closed steady from 48.00 to 58.00.

The pork carcass cutout value was up .60 at 88.50 FOB plant. Bellies and ribs were significantly higher.

Pork loin prices continue to soften as supply lines have been replenished following the Memorial Day holiday and retail interest during mid-June has waned. If carcass value is to move significantly higher, hot belly demand will have to be the driver. So far there hasn’t been much of a fire in the belly market.

The Tuesday hog kill was estimated at 423,000 head, 5,000 less than last week, but 4,000 greater than last year at this time.