Market News

A few cattle trade in the south

USDA Mandatory reported cattle trading was slow on light demand in Kansas on Wednesday. A few sales sold at 132.00 live. Trading remained at a standstill in other areas. Some asking prices are around 136.00 plus in the South, and 215.00 plus in the North. Bids at 132.00 live and 208.00 to 209.00 dressed. The slaughter was estimated at 115,000 head, 1,000 more than last week, and 2,000 greater than a year ago.

The Fed Cattle Exchange Internet Auction had 2,548 head listed on Wednesday. 1333 head sold, with 1086 head with a 1-9 day delivery at a weighted average of 132.54, last week’s weighted average for the same delivery time at 135.16. The balance of the offering for 1-17 day delivery averaged 132.50.

Boxed beef cutout values were firm on choice and lower on select on light to moderate demand. Choice beef was .34 higher at 246.08, select 219.60, down 1.57

Chicago Mercantile Exchange live cattle contracts settled .35 to 1.40 lower as pressure developed through the cattle markets with August through December contracts finishing triple digits lower. Traders were able to limit losses in some cases to half of the earlier pressure seen in the morning trade. Trade volume remained sluggish through the close.

Feeder cattle ended the Wednesday session .25 to 2.85 lower. Even though prices backed away from session losses near $4.00 per hundredweight, the significant pressure put some significant uncertainty on the entire market and could limit the overall outlook of cattle market support through the next several trading sessions.

Feeder cattle receipts at the Ozarks Regional Stockyards at West Plains, Missouri totaled 4547 head. Compared to last week, steer and heifer calves traded steady to 6.00 higher with spots of 10.00 higher. Yearling steers traded 3.00 to 6.00 higher with yearling heifers lightly tested. Demand was good on a heavy supply. Feeder steers medium and large 1 weighing 620 pounds brought 167.43 per hundredweight. 619 pound heifers averaged 142.42.

Lean hog futures settled .05 to .57 lower, with only June higher by .05 to finish at 80.20. The inability to draw additional buyer support back into the market severely limited overall activity in all markets and created pressure in the far deferred futures. Trade was light through the entire complex.

Barrows and gilts in the Iowa/Minnesota direct trade closed .28 lower at 71.36 weighted average on a carcass basis, the west was down .25 at 71.28, and nationally the market was .50 lower at 70.71. Missouri direct base carcass meat price was 1.00 higher from 64.00 to 65. Illinois direct hogs on a live basis were weak from 44.00 to 52.00, sows 1.00 to 2.00 lower from 38.00 to 50.00.

The pork carcass cutout value was down .44 at 89.86 FOB plant.

Hog slaughter was estimated at 441,000 head, 3,000 more than last week, and 8,000 greater than last year.

Given the fact that U.S. and China beef negotiations seem to be developing nicely, with some believing U.S. exporters will be shipping beef to China as early as late June, it is possible that U.S. pork shipments could be checked to some extent as China realigns its red meat mix.