Market News

Boxed beef is lower but pork is higher

The cash cattle market remained at a standstill on Tuesday. There have been private source reports of a few cattle traded in the North to be delivered near mid-July at around 193.00 to 195.00 on a dressed basis. DTN says it is tough to interpret what that means for the spot cash market. There are a few bids in the South at 122.00 live and 195.00 dressed in Nebraska. The cattle kill totaled 117,000 head, the same as last week, but 5,000 more than last year.

Boxed beef cutout values were lower to sharply lower on light demand and light to moderate offerings. Choice beef down 2.47 at 246.99, select down 1.48 at 219.88.

Feeder cattle receipts at the Joplin, Missouri Regional Stockyards on Monday totaled 4,654 head. Compared to last week, steers and heifers weighing less than 700 pounds were 5.00 to 8.00 lower with spots of down 10.00, particularly on calves under 600 pounds, heavier weights were steady. Sharp losses in the futures trade put pressure on the local feeder cattle trade. The quality was slightly below average ahead of Thursday’s preconditioned special. There was still good demand for heavy yearlings, with prices matching or in some cases just surpassing last week’s market top. Feeder steers medium and large 1 averaging 675 pounds brought 150.90 per hundredweight. 676 pound heifers traded at 142.19.

Chicago Mercantile Exchange live cattle contracts settled .12 to .32 lower with only the June contract up by .35. Even though the contracts moved off of contract lows, additional buyer support failed to develop before the close. Pressure in the feeder cattle market was one of the main factors in the complex.

Feeder cattle futures settled .95 to 1.60 lower, but well of the triple digit lows seen earlier in the complex. The overall lack of support in all cattle trade combined with the lack of support in most other commodity markets allowed for feeder cattle traders to lead the market lower.

Lean hogs settled 1.10 higher to .40 lower, with July through October contracts in the black. Strong commercial support moved into the front month July futures based on the aggressive cash market support seen through the last couple of weeks. Fundamental support remains extremely strong in both cash hogs and pork cutout values.

Barrows and gilts in the Iowa/Minnesota direct trade closed .94 higher at 87.54 weighted average on a carcass basis, the west was up .92 at 87.50, and nationally the market was 1.26 higher at 86.76. Missouri direct base carcass meat price closed steady to 7.00 higher from 74.00 to 81.00. Illinois direct hogs on a live basis 1.00 higher from 54.00 to 60.00, sows 2.00 higher 38.00 to 49.00.

The pork carcass cutout value was up 2.28 at 98.85 FOB plant. Bellies and loins were up the most.

The hog slaughter is estimated by USDA at 431,000 head, 2,000 less than last week, and 9,000 more than last year.