Market News

Cattle trade may be completed for the week

Cattle country was quiet on Thursday afternoon after seeing just a few scattered deals here and there in the morning. A few pens traded in Kansas at 120.00, $2.00 lower than Wednesday and 11.00 less than last week. It is sounding like business could essentially be done for the week. The cattle slaughter was estimated at 116,000 head, 1,000 below last week, but 2,000 more than last year.

Boxed beef cutout values were lower to sharply lower on light to moderate demand and offerings. Choice boxed beef was down 2.54 at 242.88, and select 216.92, down 1.98.

Live cattle contracts settled .57 to 1.15 lower on the Chicago Mercantile Exchange. Strong market pressure developed through the live cattle futures. The lack of support was based on the weakness in cash cattle and beef values as traders quickly and steadily backed away from the market. There could be additional pressure in the market on Friday as traders prepare for the cattle on feed report.

Feeder cattle contracts settled .37 to 1.20 lower but off of the early morning lows as traders continued to focus on morning pressure and losses in cash markets seen through the week.

Feeder cattle receipts at the Hub City, South Dakota Livestock Auction totaled 2142 head on Wednesday. Compared to last week, the best test was on steers weighing 1,000 to 1,100 pounds mostly steady. Heifers were of a different weight class than last week and not well compared. There was good demand for the offering of several packages, mostly home raised cattle, and a couple of long strings of backgrounded cattle which sold on an active market. Feeder steers medium and large 1 averaging 981 pounds brought 139.15 per hundredweight. 813 pound heifers’ traded at 144.14.

Lean hogs settled .30 to 2.35 lower as pressure developed on Thursday with nearby contracts experiencing the most aggressive selling. July finished below 86.00 and August was down the most. The focus was on position squaring following an aggressive run of strong cash market and pork value support over the last few days. This could limit additional buyer interest in the coming days, but may not keep buyers out of the market long term.

Barrows and gilt in the Iowa/Minnesota direct trade closed .59 lower at 86.61 weighted average on a carcass basis, the West was down .64 at 86.60, and nationally hogs were 1.32 lower at 85.48. Missouri direct base carcass meat price was steady from 78.00 to 81.00. Illinois direct trade on a live basis steady from 54.00 to 62.00, sows 2.00 higher from 46.00 to 55.00.

The pork carcass cutout value was down 1.57 at 99.52 FOB plant. All cuts except the butt primal were lower.

For the week ending June 17, Iowa barrows and gilts averaged 277.5 pounds, 1..5 pounds lighter than the week before and 1.7 pounds smaller than 2016.

The hog slaughter was estimated at 432,000 head, 1,000 less than last week, and 8,000 more than last year.