Cattle buyers lower bids
Cattle country was quiet on Wednesday afternoon as packers backed bids down several dollars from the morning. Live bids started out at 130.00, and are now at 128.00, while dressed bids started out around 210.00 and are now at 208.00. DTN reports some of their contacts are saying that the disinterest in buying cattle is due to lower futures, being well bought, and preparing for summer heat. Asking prices are around 132.00 in the South, and 213.00 in the North. The kill is estimated at 116,000 head, even with last week, but 3,000 more than last year.
After two weeks of technical difficulties with the Fed Cattle Exchange’s new website, they have decided to switch back to their prior system. Trade will resume next Wednesday.
Boxed beef cutout values were lower on light to moderate demand and offerings. Choice beef 251.03, down .16, and select 220.66, down .79.
Chicago Mercantile Exchange live cattle contracts settled 1.87 to 3.00 lower with liquidation the major objective of the trading session. Some futures did back away from the daily trading limits of $3.00 per hundredweight. The concern that additional pressure will continue to be seen in the cash markets was temporarily limited by firmer boxed beef values in the morning report. But the overall tone of the market remains weak as buyers are going to have a hard time stepping back into the market at this point given the strong pressure seen over the last couple of trading sessions.
Feeder cattle contracts settled 3.00 to 4.40 lower, but losses in some contracts backed away from session lows. Traders seem to be concerned about long term market pressure through the middle of the week, and feeder cattle futures appear to be leading the market lower.
Ozarks Regional Stockyards at West Plains, Missouri had receipts of 2,276 head of feeder cattle on Tuesday. Compared to last week, steer calves under 500 pounds traded 7.00 to 14.00 lower with heavier weights and yearling steers 4.00 to 7.00 lower. Heifer calves were steady to 5.00 lower. Demand was good on a moderate supply. Feeder steers medium and large 1 averaging 722 pounds brought 148.58 per hundredweight. 671 pound heifers traded at 142.70.
Lean hogs settled mixed from .30 higher to .50 lower. Wide price ranges were seen across the complex as the aggressive cattle market losses had a varied impact on lean hog futures. Nearby buyer support held with the June through August futures moving higher with June closing at 83.00. Deferred contracts maintained light pressure based on the pressure in the cattle complex.
Barrows and gilts in the Iowa/Minnesota direct trade closed 3.06 higher at 83.65 weighted average on a carcass basis, the West was up 2.83 at 83.35, and nationally the market was 2.17 higher at 81.99. Missouri direct base carcass meat price was steady from 59.00 to 70.00. Illinois direct hogs on a live basis closed 1.00 higher from 52.00 to 57.00.
The pork carcass cutout value was up .10 at 95.07 FOB plant.
The cash hog market exploded higher again on Wednesday with the Iowa/Minnesota direct trade up over $3. Bullish fundamentals continue to build, a fact that should spur soon to be spot July lean futures to keep leading cash higher.
The hog slaughter was estimated at 433,000 heard. 6,000 less than last week, but 7,000 more than last year.
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