Market News

Pork and beef values close higher

The distribution of this week’s cattle showlists is complete, and ready numbers appear to be significantly smaller in Texas, larger in Colorado and Kansas, and about steady in Nebraska. There has not been much evidence of asking prices, but feedlot managers are expected to start out pricing cattle around 116.00 to 118.00 in the South. Monday’s cattle slaughter was estimated at 115,000 head, 1,000 more than last week, and 4,000 greater than last year.

Boxed beef cutout values closed firm to higher on moderate demand and light to moderate offerings. Choice beef was up 1.67 at 191.39, and select was .53 higher at 173.23.

Live cattle contracts on the Chicago Mercantile Exchange settled .50 higher to .40 lower. The main market features were short covering and follow through selling. Traders may not be able to bring active support back into the market until later in the week as more focus will be placed on both cash markets and outside market direction.

Feeder cattle closed .27 lower to .10 higher after a choppy directionless trade for much of the session. The lack of direction in the complex comes following active pressure on Friday which pushed nearby contracts triple digits lower as January futures posted a $3.17 loss, moving below !25.00 per hundredweight. The ability to bring support through the week could help to instill additional buyer activity late in the month, but uncertainty in cash markets may limit upward movement.

At the Joplin, Missouri Regional Stockyards on Monday receipts totaled 8,000 head. Compared to last week, steer and heifer calves were steady to 3.00 lower, yearlings were not well tested early, and the undertone was lower. The demand was moderate on a heavy supply. Feeder steers medium and large 1 weighing 550 to 600 pounds brought 129.00 to 147.00 per hundredweight. Feeder heifers weighing 550 to 600 pounds traded from 125.00 to 134.00.

Lean hog contracts settled .12 to .97 higher as strong buyer support quickly moved back into the market through nearby futures trade as buyers quickly moved back into the market. December through June contracts were up the most.

Barrows and gilts in the Iowa/Minnesota direct trade closed .16 higher at 47.70 weighted average on a carcass basis, the West was up .25 at 47.76, and nationally the market was .58 higher at 47.74. Missouri direct base carcass meat price closed steady from .37 to 40.00. Midwest hogs on a live basis were steady to 4.00 higher from 25.00 to 36.00.

The pork carcass cutout value was .81 higher at 74.06 FOB plant.

The fact that last week’s cash hog trade managed to jump nearly $6.00 on a lean basis in the face of another round of record slaughter is a good indication that margin happy processors smell a change in the wind.

The hog slaughter totaled 443,000 head, the same as last week, but 2,000 more than last year.