Market News

Triple digit gains in the cattle complex

Activity in cattle country on Monday was typically quiet as packers focused on the distribution of the new showlists. The expectation is ready numbers will be about steady with last week. Asking prices should start out around 117.00 to 118.00 in the South and 190.00 plus in the North. The Monday cattle slaughter was estimated by USDA at 113,000 head, 3,000 greater than last week, and up 8.000 from 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 1.50 at 198.59, and select was .13 lower at 189.44.

Chicago Mercantile Exchange live cattle contracts settled with triple digit gains of 220 to 300 points on Monday. The ability to hold the gains through the close should help to draw additional buyer support through the remainder of the week.

Aggressive buyer support was evident in the feeder cattle with triple digit and limit gains from 405 to 450 points. The ability to lock contracts higher through the close will not only evoke expanded limits on Tuesday, but could bring additional buyer support which have steadily liquidated the market over the last month.

A very light run of just 1172 feeder cattle at the Joplin, Missouri Regional Stockyards on Monday. Compared to last week, there was not a good test on steers under 600 pounds, over 600 pounds firm to 3.00 higher. Heifers of all weights were steady. Receipts were curtailed again due to extreme heat and humidity with slightly cooler temperatures expected the rest of the week. Supply was light and demand was moderate to good. Feeder steers medium and large 1 weighing 623 pounds brought 144.99 per hundredweight. Heifers weighing 618 traded at 134.16.

Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 5,100 head. Compared to last week, feeder steers and heifers opened steady to 1.00 higher. Early demand was good following the cattle on feed report. Steer and heifer calves were not well tested in the early rounds. Feeder steers medium and large 1 weighing 600 to 700 pounds brought 147.50 to 153.50 per hundredweight. 675 to 700 pound heifers brought 138.50 to 141.00.

Lean hogs settled 30 to 80 points higher after trading lower earlier in the session. Support came from the triple digits gains seen in the cattle futures. The market continues to look for additional long term market direction.

Barrows and gilts in the Iowa/Minnesota direct trade closed .81 lower at 69.22 weighted average on a carcass basis, the West was down .83 at 69.12, and the national market was .87 lower at 68.54.     The Missouri direct base carcass meat price was weak to 1.00 lower from 64.00 to 66.00. Midwest hogs on a live basis closed steady to 5.00 lower from 40.00 to 50.00.

The pork carcass cutout value was up .41 at 88.89 FOB plant.

Hog finishing floor margins in June were excellent, the best in nearly 18 months. Such news and defensive action in the grain markets will surely stoke longer term plans to expand the hog herd and pork production.

Hog slaughter was estimated by USDA at 429,000 head, 19,000 greater than last week, and 12,000 more than last year.