Market News

Packer inquiry on cattle light

The June 1 cattle on feed report appears to be neutral, fitting almost perfectly with pre-report estimates. On feed numbers up 2%, placements in May 10% more, and May marketing’s up 5%.

Packer inquiry into the cattle remained very light on Friday afternoon with just a few scattered sales reported in parts of the North at 188.00 to 189.00 dressed, and 116.00 live. More action was expected into the late afternoon. Asking prices for cattle remaining on the showlists are around 118.00 in the South and 190.00 to 192.00 in the North. The weekly kill was estimated at 608,000 head, 1,000 more than the previous week, and 49,000 greater than 2015.

Boxed beef cutout values ended weak to lower on light to moderate demand and moderate offerings. Choice beef was down 1.60 at 213.86, and select was .51 lower at 197.83.

Chicago Mercantile Exchange live cattle contracts settled 112 to 297 points lower following the direction of outside markets as triple digit losses continued across the complex. Concern about how global economics will react over the coming weeks and months to the United Kingdom leaving the EU and also the availability of money in commodity markets kept everyone unwilling to buy.

Feeder cattle settled 92 to 292 points lower. Feeder cattle futures were under sharp pressure following the lack of support in outside markets. Even though prices bounced off early lows, the lack of support in the market was evident.

Missouri feeder cattle auctions had receipts of 27,550 cattle this week. Compared to the previous week, feeder steers and heifers sold 5.00 to 10.00 lower with some local barns reporting instances of 15.00 to as much as 20.00 lower. The supply of feeders was moderate, even with the high heat some special sales of good high quality cattle were sold. Feeder steers medium and large 1 averaging 622 pounds traded at 149.59 per hundredweight. 620 pound heifers brought 138.72.

Lean hogs settled 22 to 110 points lower. Activity was extremely light with prices moving very little through much of the session. The overall lack of direction through the hog market in front month futures kept losses narrow. Deferred futures were more heavily impacted by outside market pressure.

Barrows and gilts in the Iowa/Minnesota direct trade closed .58 lower at 82.03 weighted average on a carcass basis, the west was down .60 at 81.89, and nationally the market was .30 lower at 81.00. Missouri direct base carcass meat price was steady from 68.00 to 74.00. Midwest hogs on a live basis closed steady from 49.00 to 60.00.

The pork carcass cutout values were .36 higher at 89.27 FOB plant. Ribs and bellies up the most.

The nations hog inventory was up 1.8 percent at the start of June according to Friday’s quarterly hogs and pigs report. The breeding herd is up 0.9 percent, and market hog inventory was up 1.9 percent compared to a year ago. This is the largest June 1 hog inventory of record.

The weekly hog kill was estimated at 2,103,000 head 57,000 less than last week, and down 38,000 from last year.

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