Cattle futures close with limit gains

The feedlot cattle trade remained at a standstill on Tuesday afternoon with some not expecting significant business until late in the week. Asking prices seemed to be firming in the wake of sharply higher futures. Most showlists appear to be priced around 158.00 plus in the South and 250.00 plus in the North. The kill totaled 117,000 head, 1,000 more than last week, but 4,000 less than last year.

Boxed beef cutout values were sharply higher in the afternoon report on good demand and moderate offerings. Choice beef was up 2.28 at 252.80 and select was 1.71 higher at 245.79.

Chicago Mercantile Exchange live cattle contracts settled 155 to 300 points higher with the August finishing with limit gains. This kept front month futures from moving to new contract highs, but the momentum seen in the market could easily draw additional buyers back into the market on Wednesday, sparking another aggressive round of buying. There was very little new direction seen in the market, although the focus through the session was once again being paced on the ability to sustain strong summer demand and raise questions about the ability to gain access to market ready cattle over the near term. August settled 3.00 higher at 155.95, and October was up 2.62 at 157.87.

Feeder cattle settled 242 to 300 points higher with all remaining 2014 contracts locked limit up. The continued pressure in the corn market as well as expectations that cattle and beef supplies will continue to tighten through the late summer and early fall created a swarm of buyer interest into the market. August settled at 216.02, and September at 216.77 with both up the 3.00 limit.

Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 5700 head. Steer and heifer calves were weak in a light test. The demand was good for most all classes. Quality was typical of the summer and plain and average. Feeder steer calves medium and large 1 weighing 550 to 600 pounds ranged from 241.00 to 250.00. 650 to 700 pound yearlings brought 223.00 to 234.00. 500 to 575 pound heifer calves traded from 226.00 to 235.00. 650 to 700 pound yearling heifers’ brought209.00 to 216.00.

Lean hogs settled unchanged to 247 higher. The early pressure in the lean pit was quickly replaced by moderate to strong gains following the limit higher moves in the cattle complex. August settled 2.47 higher at 127.57 and October was up .75 at 113.45.

Barrows and gilts in the Iowa/Minnesota direct trade closed 1.63 lower at 126.02 weighted average on a carcass basis, the West was down 1.52 at 125.97, and the East was .63 lower at 125.94. Missouri direct base carcass meat price was steady from 119.00 to 122.00. Midwest barrows and gilts were fully steady on a live basis from 89.00 to 96.00.

The pork carcass cutout value was 1.15 lower at 133.84 FOB plant. The belly primal was responsible for much of the loss, down over 10.00.

While the belly primal calculated sharply lower again on Tuesday in light volume, the speed bump looks temporary with good seasonal strength expected to continue for another two to three weeks. Furthermore, sources in the ham trade continued to be impressed with the potential for third-quarter ham demand.

The hog kill was estimated at 398,000 head, 1,000 more than last week, but 2,000 less than last year.

Closing Grain and Livestock Futures: July 22, 2014

Sep. corn closed at $3.60 and 1/4, down 3 and 3/4 cents
Aug. soybeans closed at $11.84, up 8 and 1/4 cents
Aug. soybean meal closed at $381.80, up $1.10
Aug. soybean oil closed at 35.93, down 21 points
Sep. wheat closed at $5.24 and 1/2, down 5 and 1/2 cents
Aug. live cattle closed at $155.95, up $3.00
Aug. lean hogs closed at $127.57, up $2.47
Aug. crude oil closed at $104.42, down 17 cents
Oct. cotton closed at 68.80, up 29 points
Aug. Class III milk closed at $21.40, up 7 cents
Aug. gold closed at $1,306.30, down $7.60
Dow Jones Industrial Average: 17,113.54, up 61.81 points

Meat stocks decline

USDA reports red meat and poultry supplies at the end of June were sharply below last year’s levels.

On June 30, 2014, red meat totaled 929.972 million pounds, down 5% from May 31, 2014 and 13% less than on June 30, 2013, mainly thanks to strong beef demand. Beef stocks were pegged at 357.759 million pounds, a decrease of 5% from last month and 26% from last year, and well below the five year average of 438 million pounds. Pork came out at 537.717 million pounds, 7% less than a month ago and 5% lower than a year ago, but above the five year average of 529 million pounds.

Poultry totaled 1.019 billion pounds, down 2% on the month and 18% on the year, with chicken at 556.830 million pounds, 18% lower than last year, and turkey at 460.414 million pounds, a 19% year to year decline.

USDA’s livestock and poultry slaughter numbers are out on Thursday.

Tuesday midday cash livestock markets

The new cattle showlists distributed on Monday looked to be mixed, some larger in the North and moderately smaller in the South. Overall the ready numbers seem about as tight and price positive as they have been through the first half of summer. The country is quiet with bids and asking prices not fully established. A few showlists have been suggested to be priced around 158.00 to 160.00 in the South, and 250.00 plus in the North.

Boxed beef cutout values ae sharply higher in the morning report. Choice boxed beef is up 3.07 at 253.59, and select is 2.10 higher at 246.18.

Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 5700 head. Steer and heifer calves were weak in a light test. The demand was good for most all classes. Quality was typical of the summer and plain and average. Feeder steer calves medium and large 1 weighing 550 to 600 pounds ranged from 241.00 to 250.00. 650 to 700 pound yearlings brought 223.00 to 234.00. 500 to 575 pound heifer calves traded from 226.00 to 235.00. 650 to 700 pound yearling heifers’ brought209.00 to 216.00.

Barrows and gilts in the Iowa/Minnesota, Western and Eastern direct trade ae not established due to confidentiality. Nationally the market is 1.03 lower with a weighted average of 126.01 on a carcass basis. Missouri direct base carcass meat price is steady from 119.00 to 122.00. Midwest barrows and gilts are fully steady on a live basis from 89.00 to 96.00.

The pork carcass cutout value is .01 higher at 135.00.

While the belly primal calculated sharply lower yesterday in light volume, the speed bump looks temporary with good seasonal strength expected to continue for another two to three weeks. Furthermore, sources in the ham trade continued to be impressed with the potential for third-quarter ham demand.

Tyson official: Animal wefare will continue to drive change

The vice president of animal well-being for Tyson Foods, Dean Danilson, says farm animal welfare issues will continue to be “a driver for change” in the meat industry.  And Danilson says those in the meat and livestock industries must continually ask themselves, “Is there a better way to do things?”.

Here is an excerpt from Danilson’s presentation at the recent Iowa Farm Bureau Economic Summit in Ames.

AUDIO: Dean Danilson (12:58 MP3)

Closing Grain and Livestock Futures: July 21, 2014

Sep. corn closed at $3.64, down 7 and 1/4 cents
Aug. soybeans closed at $11.75 and 3/4, down 1 cent
Aug. soybean meal closed at $380.70, up 40 cents
Aug. soybean oil closed at 36.14, down 43 points
Sep. wheat closed at $5.30, down 2 and 1/4 cents
Aug. live cattle closed at $152.95, up $1.32
Aug. lean hogs closed at $125.10, down $1.97
Aug. crude oil closed at $104.59, up $1.46
Oct. cotton closed at 68.52, down 11 points
Aug. Class III milk closed at $21.48, up 7 cents
Aug. gold closed at $1,313.90, up $4.50
Dow Jones Industrial Average: 17,051.73, down 48.45 points

Boxed beef was sharply higher but pork was lower

Cattle country was quiet on Monday afternoon following the distribution of the new showlists. The new offering appears to be mixed, somewhat larger in the North and smaller in the South. Generally speaking, ready numbers continue to be historically tight. A few preliminary asking prices have been suggested around 158.00 plus in the South, and 250.00 plus in the North. The kill totaled 115,000 head, 3,000 more than last week, but 4,000 smaller than a year ago.

Boxed beef cutout values are higher on moderate to good demand and light to moderate offerings. Choice boxed beef was up 2.07 at 250.52, and select was 1.43 higher at 244.08.

Chicago Mercantile Exchange live cattle contracts settled 25 to 132 points higher. Futures held strong gains throughout the Monday session. The most aggressive support was evident in the nearby contacts. Traders remained focused on tight cattle supplies and the need to gain access to live cattle while beef values continue to appreciate at a rapid pace, August settled 1.32 higher at 152.95, and select was up .92 at 155.25.

Feeder cattle ended the session 95 to 147 points higher supported by stronger live cattle futures and that sparked additional buying interest in the feeder complex. Traders continued to look for additional direction from outside markets. The softness in the grain complex also lent support to the market. August settled 1.37 higher at 213.02, and September was up 1.47 at 213.77.

Feeder cattle receipts at the Joplin, Missouri Regional Stockyards on Monday totaled 4,000 head. Compared to last week, steer calves opened 5.00 to 15.00 higher, heifer calves were steady, and yearlings had no early test. Demand was good on a moderate supply. Feeder steers medium and large 1 weighing 500 to 600 pounds ranged from 255.00 to 290.00. 5 to 6 weight heifers brought 225.00 to 236.00. [Read more...]

Monday midday cash livestock markets

The main item of business in cattle country on Monday is the collection of the new showlists. The new offering is expected to be about steady with last week. Preliminary asking prices should be around 158.00 in the South and 250.00 plus in the North. Beef cutouts closed significantly lower on Friday, reflective of a defensive tone that some could characterize as typical for midsummer. Yet production remains extremely light, totaling no more than 460.9 million pounds, 11.4 percent below last year. Such severe reduction could easily work to insure a firm undertone in the wholesale trade according to DTN.

Boxed beef cutout values were higher in the morning report. Choice beef is up 2.02 at 250.47, and select is 1.69 higher at 244.34.

Feeder cattle receipts at the Joplin, Missouri Regional Stockyards on Monday totaled 4,000 head. Compared to last week, steer calves opened 5.00 to 15.00 higher, heifer calves were steady, and yearlings had no early test. Demand was good on a moderate supply. Feeder steers medium and large 1 weighing 500 to 600 pounds ranged from 255.00 to 290.00. 5 to 6 weight heifers brought 225.00 to 236.00.

Barrows and gilts in the Iowa/Minnesota, Western and Eastern direct trade areas are not reported due to confidentiality. Nationally the market is 1.05 lower with a weighted average of 126.29 on a carcass basis. Missouri direct base carcass meat price is steady to 3.00 lower from 119.00 to 122.00. Barrows and gilts in the Midwest are 2.00 lower to 3.00 higher live from 88.00 to 96.00.

The pork carcass cutout value is down .79 at 136.77.

Last week’s hog slaughter once again reflects the severe pig death loss last winter caused by PED, totaling no more than 1.833 million head, down 1.4% from the week before 8.9% less than 2013.

Feeder cattle sell lower at Missouri auctions

Feedlot country was at a standstill on Friday afternoon with business wrapped up for the week. Asking prices next week are likely to be around 158.00 plus in the South and 250.00 plus in the North. While packer margins look decent, many are worried about the possibility of sluggish product demand over the next two to four weeks. The weekly cattle kill was estimated at 577,000 head, 1,000 greater than the previous week, but 76,000 less than last year.

Boxed beef cutout values were lower on light demand and light to moderate offerings. Choice beef was down 1.36 at 248.45, and select was 1.59 lower at 242.65.

Live cattle contracts on the Chicago Mercantile Exchange settled 17 to 97 points higher. Sharply lower boxed beef prices at midday pulled live cattle futures off triple digit gains, but did very little to totally wreck the aggressive nature of the market that was seen over the last couple of trading sessions. The live cattle market is an example of a market that just won’t quit and seems to come back every time. August settled .97 higher at 151.62 and October was up .12 at 154.32.

Feeder cattle closed in a narrow trading range of 20 points higher to 5 lower. August was .05 higher at 211.65, and September was down .05 at 212.30.

[Read more...]

Closing Grain and Livestock Futures: July 18, 2014

Sep. corn closed at $3.71 and 1/4, down 8 and 1/4 cents
Aug. soybeans closed at $11.76 and 3/4, up 2 cents
Aug. soybean meal closed at $380.30, down 20 cents
Aug. soybean oil closed at 36.57, up 20 points
Sep. wheat closed at $5.32 and 1/4, down 18 and 1/2 cents
Aug. live cattle closed at $151.62, up 97 cents
Aug. lean hogs closed at $127.07, down $1.77
Aug. crude oil closed at $103.13, down 6 cents
Oct. cotton closed at 68.63, up 18 points
Aug. Class III milk closed at $21.33, down 9 cents
Aug. gold closed at $1,309.40, down $7.50
Dow Jones Industrial Average: 17,100.18, up 123.38 points