Market News

Cattle and hog futures close sharply higher

The cattle trade was at a standstill on Friday afternoon, and trade appeared completed for the week. The trade volume totals doer the week look to be moderate with mandatory picking up surprising numbers in its summaries. For the week dressed sales in the North ranged from mostly 183.00 to 185.00, $2.00 lower than the previous week. Live sales in the South from 113.50 to 114.00. The weekly cattle kill totaled 595,000 head, 3,000 below the previous week, but 6,000 greater than 2015.

Boxed beef cutout values were weak on choice and steady on select on light to moderate demand and offerings. Choice beef was down .61 at 200.09, select was .25 lower at 189.57.

The July 1 cattle on feed report turned out to be somewhat friendly, with June placement activity turning out to be smaller than expected. On feed numbers up 1%, placements up 2%, and marketing’s in June 9% higher.

Live cattle contracts on the Chicago Mercantile Exchange settled 150 to 242 points higher, supported by aggressive short covering and pre cattle on feed report positioning. Live futures actually opened lower because of follow through selling, but late week buying interest quickly surfaced, lifting the market from extreme contract lows posted on Thursday.

Feeder cattle closed 210 to 350 points higher. Like their live counterparts, feeders quickly reversed from a lower opening. The late week buying interest was tied to short covering and pre on feed cattle report profit taking.

Feeder cattle receipts at Missouri auctions this week totaled 11,332 head. Compared to last week, an extremely light test of feeders sold steady to 5.00 lower. The week was dominated by excessive heat that overtook most of the nation. Cattle struggle and there really isn’t much one can do but leave them alone. Auction receipts were light and several barns did not even hold sales. Owners do not want to hassle livestock and buyers know health risk and loss is a huge concern trying to transport and get cattle settled in a new home in these conditions. Feeder steers medium and large 1 averaging 675 pounds brought 147.94 per hundredweight. 668 pound heifers traded at 134.47.

Lean hog contracts ended the session 82 to 270 points higher and corrected from Thursday’s aggressive round of selling, with the deferred contracts outperforming the nearby contracts. DTN’s John Harrington says the positive action looked like nothing but a dead cat bounce.

Barrows and gilts in the Iowa/Minnesota direct trade were .28 lower at 70.03 weighted average on a carcass basis, the West was down .14 at 69.95, and nationally the market was .47 lower at 69.41. Missouri direct base carcass meat price was steady to 1.00 lower from 65.00 to 66.00.

Feeder pig receipts nationally this past week totaled 74, 875 head. Early weaned pigs were 1.00 to 2.00 lower per head. All feeder pigs traded 3.00 lower. The demand was light to moderate for a moderate offering. Early weaned pigs, 10 to 12 pound basis ranged from 12.00 to 25.00. 40 pound basis pigs from 26.00 to 39.00. Prices quoted are on a per head basis delivered to the buyer’s farm, and include freight and fees on a farm to farm basis.

The pork carcass cutout value was down .43 at 88.48 FOB plant.

The weekly hog slaughter is estimated by USDA at 2,141,000 head, 20,000 more than last week, and 47,000 more than last year.