Pork and beef values close higher
There was not a lot of action in cattle country on Tuesday with bids and asking prices still far and few between. DTN reports hearing of a few cattle being priced around 130.00 in parts of the South. Significant trade is not expected until the end of the week. The cattle kill was estimated at 115,000 head, 2,000 more than last week, and 3,000 more than last year.
Boxed beef cutout values were higher on moderate to fairly good demand and offerings. Choice beef 215.99, up 1.86, select 202.20, up 1.42.
Live cattle contracts settled.07 to 35 higher. Live cattle contracts traded mixed for much of the session and with little follow through buyer support able to develop. The pressure in feeder cattle markets sparked the underlying uncertainty in the rest of the live cattle market allowing traders to pull back from previous market moves.
Feeder cattle contract’s settled .10 to .37 lower as pressure developed in the complex with position squaring the main indication.
The Oklahoma National Stockyards feeder cattle receipts totaled 6,000 head on Monday. Compared to last week, feeder steers and heifers traded 2.00 to 5.00 higher. Steer calves sold 4.00 to 5.00 higher and heifer calves were 1.00 higher on limited offerings. The demand was moderate to good. The quality was mostly average. Rain over the weekend hampered livestock movement. Feeder steers medium and large 1 weighing 686 pound averaged 149.43 per hundredweight. 778 pound heifers brought 127.38.
Lean hogs settled .85 lower to 82 higher with the May through August contracts all lower but off the day’s triple digit losses. Even though pork values posted gains in the morning report, little support was seen in futures prices as traders focused on the potential of growing supplies and availability of hogs hitting the market over the next several weeks.
Barrows and gilts in the Iowa/Minnesota direct trade closed .88 lower at 55.13 weighted average on a carcass basis, the West was down .84 at 55.15, and nationally hogs were .44 lower at 55.08. Missouri direct base carcass meat price was steady from 49.00 to 50.00. Illinois direct trade hogs on a live basis steady from 35.00 to 42.00.
The pork carcass cutout value was up .52 at 75.48 FOB plant. Only bellies were lower by $4.15.
Packer demand for hogs will increase when the margins improve enough to turn the cash light green, and clearly they are not there yet.
The hog slaughter on Tuesday was estimated at 443,000 head, the same as last week, and 7,000 more than last year.
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