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Cattle showlists appear larger

Feedlot country was typically slow on Tuesday following the distribution of the new showlists. The early July offering appears to be generally larger than last week, with only Kansas reporting fewer ready steers and heifers, Asking prices are not well defined, but the expectation is feedlots will start out pricing cattle around 124.00 plus in the South, and 200.00 to 205.00 in the North.

The Tuesday kill is estimated by USDA at 112,000 head, 2,000 less than last week, but 1,000 more than last year.

Boxed beef cutout values were steady on choice and higher on select on light to moderate demand and offerings. Choice beef was up .10 at 208.83, and select was up 1.06 at 194.79.

Chicago Mercantile Exchange live cattle contracts settled 67 to 90 points higher. Wild price swings developed across the cattle futures market on Tuesday with active pressure early in the trading session turning to gains near mid-morning. Prices swung more than $3.00 per hundredweight through the morning with markets aggressively moving in triple digit gains in either direction. Trade volume appeared to be limited.

Feeder cattle contracts settled 162 to 215 points higher after being pressured earlier by the aggressive outside market losses. Sharply lower corn prices were supportive to the feeder futures.

Feeder cattle receipts at Missouri auctions last week totaled 19,014 head. Compared to the previous week, feeder steers and heifers sold steady to 5.00 higher with some spots of up to 10.00 higher on steers. It just depended on which auction one had a seat at if that larger gain was seen on calves or yearlings. Despite the higher markets, over all fundamentals remain quite bearish, however anticipated beef demand for holiday grilling, lower corn prices and a general feeling future markets are oversold provided a nice little bounce this week. Feeder steers medium and large 1 averaging 623 pounds traded at 151.59 per hundredweight. 626 pound heifers brought 137.64.

Lean hogs ended the session 22 points higher to 70 lower, with July through October down the most. Moderate pressure held across the complex as traders looked for additional direction from not only outside markets, but also the ability to draw additional support back into the complex and stability in market fundamentals,

There was slow hog market activity with light demand on Tuesday. Barrows and gilts in the Iowa/Minnesota direct trade closed .30 higher at 79.46 weighted average on a carcass basis, the West was up .73 at 79.31, and the national market was .22 higher at 77.87. Missouri direct base carcass meat price was steady to 1.00 higher from 69.00 to 74.00. Midwest hogs on a live basis are steady from 46.00 to 60.00.

The pork carcass cutout value was down .17 at 88.85 FOB plant.

Downward pressure on cash hog prices seemed to intensify last week. Live animals appeared to be a bit easier to find, evidenced by a larger than expected slaughter, If midsummer numbers remain relatively ample, narrowing margins will have more of an impact on packer spending.

The Tuesday hog slaughter was estimated by USDA at 433,000 head, 8,000 more than last week, and 10,000 greater than last year.

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