Market News

Cattle may be carried over into next week

Cattle country remained at a complete standstill on Friday afternoon, with only a few bids reported in Kansas at 127.00 live, and Nebraska at 202.00 dressed. Psychology has clearly taken a beating this past week, thanks to sharply lower country sales and the persistence of bearish minded packers. Producers are probably resigned to carry cattle over into next week. The weekly cattle kill is estimated at 628,000 head, 6,000 more than the previous week, and 22,000 more than 2016.

Boxed beef cutout values were steady to weak with moderate demand and offerings. Choice beef was .10 higher at 249.84, select was down .73 at 219.80.

Live cattle contracts settled .20 to .67 higher with only the June down .80. Mixed trade was evident for much of the session with traders trying to square positions at the end of the week. June backed away from early support, while most other contracts were able to hold gains through the close. The potential to bring a sense of stability back into the market at the end of the week could bring commercial traders back to the table early next week. But there is still growing concern long term liquidation may develop and prices could continue to shift lower through the next month.

Feeder cattle settled .42 to .97 higher after buyer activity moved into the complex, allowing traders to break away from the choppy up and down moves seen in the markets this week. Increased market volatility is expected to be seen through the next couple of weeks, which may bring even more price swings to the complex.

Feeder cattle receipts at Missouri auctions this week totaled 21,080 head. Compared to last week, feeder steers sold 5.00 to mostly 10.00 lower, heifers were down 2.00 to 8.00. The supply of feeders was light to moderate following the previous week’s heavy offering. Many farmers were back in the fields, haying and harvesting wheat. Combined with lower markets and heat there was enough to discourage big runs of feeder cattle. Feeder steers medium and large 1 averaging 671 pounds brought 158.68 per hundredweight. 674 pound heifers average 144.91.

Lean hogs settled .27 higher to .80 lower. Early pressure eased in the market and the trade backed away from triple digit losses, but the downward pressure continued in most contracts. With July and August markets able to scratch moderate gains, the focus is now based on firm buyer support and could bring additional market support back through the end of the month, according to DTN analysts.

Barrows and gilts in the Iowa/Minnesota direct trade closed .60 higher at 85.82 weighted average on a carcass basis, the West was up .50 at 85.16, and nationally the market was, 75 higher at 84.72. Missouri direct base carcass meat price closed steady to 2.00 higher from 70.00 to 74.00.

The pork carcass cutout value was up .73 at 95.63 FOB plant.

Feeder pig receipts nationally this week totaled 126,411 head. Early weaned pigs were 2.00 per head lower. All feeder pigs were 1.00 per head lower. Demand was moderate for moderate offerings. Early weaned pigs on a 10-12 pound basis averaged from 15.00 to 32.00. 40 pound pigs ranged from 47.00 to 55.00 per head.

The weekly hog slaughter was estimated at 2,179,000 head, 13,000 less than last week, but 24,000 more than last year.