Market News

A few cattle trade in the south

A light cattle trade was evident on Wednesday afternoon in Kansas with prices near steady with Tuesday, and generally $5.00 lower than last week at 116.00. Packer inquiry seems to be light to moderate in parts of the North, but so far no business has been reported there. Asking prices are around 190.00 to 192.00 dressed, and 120.00 plus live. The cattle slaughter was estimated at 112,000 head, even with last week, but 9,000 more than last year.

Boxed beef cutout values were lower on choice and steady on select on light to moderate demand and offerings. Choice beef was down 1.07 at 217.08, and select was .14 higher at 198.35.

Chicago Mercantile exchange live cattle contracts settled 5 lower to 30 points higher. Some buyer support redeveloped despite early pressure when the markets opened. Higher boxed beef prices in the midday report was supportive to the futures, but lack of support in cash markets may limit cattle market potential through the rest of the week.

Feeder cattle settled 30 to 90 points higher as commercial and noncommercial interests stepped back into the market. The sharp gains on Tuesday rekindled market interest. However corn futures have been steady to moderately higher. The focus on potential wide shifts in feed prices over the coming weeks could bring additional support to the feeder complex.

Feeder cattle receipts at the Ozarks Regional Stockyards at West Plains, Missouri totaled 3,357 head on Tuesday. Compared to last week, feeder steer and heifer calves were 3.00 to 12.00 lower. Heavyweight yearling steers traded 4.00 to 7.00 lower with yearling heifers selling steady to 5.00 higher. Demand was moderate on a moderate supply. Feeder steers medium and large 1 weighing 576 pounds averaged 148.13 per hundredweight. 581 pound heifers brought 131.78.

Lean hogs settled 37 to 262 points lower as buyer support quickly evaporated due to the lack of follow through buying. Summer contracts posted tripe digit losses. This is still not enough to erode previous technical support, but could cause some additional concerns through the next couple of weeks.

Barrows and gilts in the Iowa/Minnesota direct trade closed .20 higher at 82.26 weighted average on a carcass basis, the West was up .18 at 82.17, and nationally the market was .05 higher at 81.19. Missouri direct base carcass meat price closed steady from 68.00 to 74.00. Midwest hogs were steady to 1.00 higher on a live basis from 48.00 to 58.00.

The pork carcass cutout value is up .77 at 89.27 FOB plant. Only loins were lower.

Packer interest in hogs remains light with the overall Saturday slaughter runs expected to remain near 12,000 head. The lack of total hog numbers moving through the system through the week indicates packers are not overly aggressive in sourcing hogs.

Wednesday’s hog slaughter was estimated by USDA at 425,000 head, 2,000 less than last week, but 7,000 greater than 2015.