It is typically quiet in cattle country on Tuesday. Bids and asking prices are not fully developed. However, a few showlists have been priced around 168.00 to 170.00 in the South, and 265.00 to 270.00 in the North. Significant trade volume will probably be delayed until the second half of the week.
Boxed beef cutout values are significantly higher in the morning report. Choice beef is up 2.60 at 261.90, and select is 2.77 higher at 258.94.
The beef carcass value continues to move impressively higher thanks to the bullish combination of reduced midsummer tonnage and solid demand. Both choice and select cut-outs set new all-time highs on Monday with box demand described as moderate.
Feeder cattle receipts at the Sioux Falls Regional Livestock at Worthing, South Dakota totaled 1722 head on Wednesday. Compared to two weeks ago. Feeder steers were 10.00 to 15.00 higher. Heifers were too lightly tested in recent weeks to make a good comparison. There was very good demand for all weights of feeder cattle. Buyers were eager bidders after last week’s sharp run-up in the cash fed market and the subsequent rise in live and feeder cattle futures. Feeder steers averaging 733 pounds traded at 239.32 per hundredweight. 595 pound heifers brought 243.00.
Barrows and gilts in the Iowa/Minnesota direct trade opened 1.23 lower at 121.15 weighted average on a carcass basis, the West is down 1.04 at 121.14, and Eastern hogs are .40 lower at 120.74. Missouri direct base carcass meat price is steady to 1.00 lower from 115.00 to 118.00. Barrows and gilts at Midwest markets are steady to 2.00 lower from 86.00 to 95.00 on a live basis.
The pork carcass cutout value is 2.52 higher at 133.46 FOB plant. Bellies, ribs, hams and loins had substantial gains.
While the bullish threat tied to PED has lost much of its sting this summer, it’s still quite possible that the spring pig crop was significantly cut in size, less than the winter pig crop, but still substantial by this devastating disease.