Market News

Livestock futures close higher on Monday

Asking prices on this week’s cattle offering are expected to be significantly higher. Yet specific talk on both sides is limited as packers and feedlot managers focus on the distribution of the new showlists. The late month offering appears larger than last week, especially in Nebraska. The cattle slaughter was estimated at 114,000 head, 1,000 less than last week, and 4,000 greater than 2015.

Boxed beef cutout values closed firm to higher on moderate to fairly good demand and moderate offerings. Choice beef was up 1.20 at 180.98, and select was up .44 at 167.17.

Chicago Mercantile Exchange live and feeder cattle contracts closed with triple digit gains on Monday. Early week futures strength was tied to at least two factors. The smaller than expected September placement confirmed in the cattle on feed report, and reports of feedlot sales of up to $102.00 in parts of Western Nebraska and Colorado on Saturday. Nearby live contracts settled .57 to 2.37 higher and above the 40-day moving average for the first time since mid-August. Feeder cattle ended the session .50 to 3.17 higher.

Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 7300 head. Compared to last week, feeder cattle and calves were 2.00 to 5.00 higher. The demand was good for all classes, and the quality was average to attractive. The bullish cattle on feed report and gains in both feeder and live cattle futures made the market more favorable. Feeder steers medium and large 1 weighing 550 to 600 pounds traded from 123.50 to 136.00. 550 to 600 pound heifers brought 116.50 to 119.00.

Lean hogs settled .22 to 1.35 higher as follow through support quickly moved into front month December with the support in the cattle market holding through the session and able to spill over to the hog complex. The ability to sustain price levels over 43.00 per hundredweight in the front month futures could spark additional buying interest in the near term and bring about more long-term buying activity into nearby contracts and the rest of the hog complex.

Barrows and gilts in the Iowa/Minnesota direct trade closed .01 higher at 48.82 weighted average on a carcass basis, the West was up.13 at 45.83, and nationally the market was .05 higher at 45.27. Missouri direct base carcass meat price was steady from 38.00 to 39.00. Midwest hogs on a live basis from 25.00 to 30.00 and steady.

The pork carcass cutout value closed .89 higher at 72.96 FOB plant.

Pork demand remains strong with plants reporting overall improvement remains good. But the ability to aggressively and consistently increase pork values through the middle of October has been a struggle, adding to the concern of renewing demand support through the next several weeks and months.

The Monday hog kill was estimated at 443,000 head, 2,000 more than last week, and 7,000 greater than last year.