Market News

No cattle bids reported

So far this week no bids have been reported on the cattle in the country. However, at the Fed Cattle Exchange Auction today reported prices were definitely higher from 103.00 to 105.00. Some are suggesting asking prices are around 105.00 in the South, and 165.00 plus in the North. If bullish sellers really dig in their heels along these lines significant trade volume may not surface until Friday. DTN reported earlier today that several packers continue to insist that they essentially have slaughter needs already covered for the next two weeks. The cattle slaughter was estimated at 115,000 head, even with last week, but 4,000 greater than last year.

Boxed beef cutout values were weak on light to moderate demand and offerings. Choice beef 182.31 up .24, and select 168.45, down .47.

Live cattle futures on the Chicago Mercantile Exchange settled .32 to .70 higher as firm buyer support stepped back into the nearby contracts on Wednesday. Lack of volume during early trade left markets generally unsupported and prices wandered in a narrow range and lower price ranges, but once initial pressure washed through the complex buyer support immerged. Traders continue to look for long term support and the potential that supplies may remain tight over the next several months.

Feeder cattle settled .07 to 1.27 higher as strong midday support stepped back into the market with the November contract leading the move higher with triple digit gains.

A large run of feeder cattle at the Philip Livestock Auction, Philip, SD, 12,587 head on Tuesday. Compared to last week, steer calves 2.00 to 4.00 higher with some up 8.00. Heifer calves up 3.00 to 5.00, with those over 600 pounds 8.00 to 10.00 higher. There was very good demand for the very large offering of high quality fully preconditioned calves. 2973 head of feeder steers medium and large 1 weighing 569 pounds brought 134.94 per hundredweight. 505 heifers weighing 577 brought 119.74.

Lean hogs settled .07 to .42 lower as a lack of buyer support redeveloped and allowed prices to move from single digit mixed trade early in the session to moderate losses through the contracts. Traders slowly backed away from the aggressive triple digit gains that pushed prices over $3.00 per hundredweight higher in the last few days At this point the move is considered nothing more than a market correction. But it is being watched closely by traders as it could quickly turn into something much more as previous market reversal have taken in the recent past.

Barrows and gilts in the Iowa/Minnesota direct trade closed .68 lower at 45.06 weighted average on a carcass basis, the West was down .61 at 45.05, and nationally the market was .51 lower at 44.88. Missouri direct base carcass meat price closed steady from 38.00 to 39.00. Midwest hogs on a live basis were steady from 24.00 to 30.00.

The pork carcass cutout value was down .38 at 73.08 FOB plant.

Although pork demand this fall has held up relatively well, some fear that consumers are close to a tipping point when adequate consumption through the balance of the fourth quarter will heavily depend on much lower wholesale and retail prices.

Wednesday’s hog slaughter is estimated at 424,000 head, 17,000 less than last week, and down 6,000 from last year.