Market News

Feedlot cattle trade at lower prices

 

USDA Mandatory reported cattle trading on Wednesday was slow on light demand in Kansas. Live sales were 7.00 lower at 128.00 A few cattle sold in the North on a dressed basis at 224.00. With a total showlist of 1,993 head, the Fed Cattle Exchange sold 1278 head. The negotiated average price on 681 head to be delivered in 1-9 days was 138.72, about 1.50 below last week’s weighted average.

Wednesday’s cattle slaughter is estimated at 115.000 head. 1,000 more than last week, and 3,000 above last year.

Boxed beef cutout values were higher to sharply higher on moderate to good demand and light to moderate offerings. Choice beef was up 2.42 at 244.58, and select 224.62, up 1.59.

Chicago Mercantile Exchange live cattle contracts settled .77 lower to .22 higher after suffering moderate losses earlier in the Wednesday session with June and August finishing lower but off the day’s lows. The lack of support across the entire cattle complex is increasingly evident as the week continues.

Feeder cattle contracts settled 3.22 lower to 1.20 higher on a couple of 2018 contracts. Triple digit losses were seen in the August, September and October contracts but closing off the day’s lows. Traders continued to look for additional potential losses possible through the end of the week. But the overall lack of support in all cattle markets and concern that widespread cash market losses will add further pressure to the complex left the market weak overall.

The Ozarks Regional Stockyards at West Plains, Missouri had receipts of 5,277 head on Tuesday. The bulk of the steer and heifer calves traded unevenly steady with steers under 500 pounds 5.00 to 10.00 lower. Yearling steers and heifers traded steady to 2.00 higher. Demand was good on a heavy supply. Sunshine across the Ozark’s dried things out enough to allow producers to make up for the light supply last week. Feeder steers medium and large 1 averaging 628 pounds brought 167.74 per hundredweight. 524 pound heifers averaged 157.24.

Lean hogs settled.92 higher to .37 lower with the far deferred contracts gaining on the nearby issues with the exception of May up .75. The overall lack of direction seemed to be limited by most traders focusing on liquidation in cattle trade and fundamental cash market interest in the hog complex.

The pork carcass cutout value finished the day at 81.12, up .10 FOB plant.

Barrows and gilts in the Iowa/Minnesota direct trade were up 1.77, the West was 1.62 higher with both at 70.08 weighted average on a carcass basis, and nationally the hog market was up .23 at 69.36. Missouri direct base carcass meat price closed steady to 1.00 higher from 52.00 to 62.00.

Pork packer spending in the country is getting increasingly impressive, a function of tightening supplies and decent margins.

Early estimates of the Saturday kill are around 89,000 head.

The Wednesday hog kill was estimated by USDA at 442,000 head, the same as last week, but 8,000 more than last year.