Market News

Beef closes higher but pork was lower

A few scattered bids were reported in feedlot country on Tuesday by private sources at 126.00 in Kansas and Texas, and 210.00 dressed in Nebraska Some asking prices have been noted around 130.00 to 131.00 in the South, and 214.00 plus in the North. Cash business could develop on Wednesday following the midweek pattern of the last few weeks. Perhaps higher internet sales will once again spark meaningful country business. The cattle kill was estimated at 116,000 head, 4,000 greater than last week and last year.

Boxed beef cutout values were higher on good demand and moderate to heavy offerings. Choice beef 224.93, up 1.17, select 215.41, up 1.44.

Chicago Mercantile Exchange live cattle contracts settled .05 to 1.25 higher on Tuesday. Strong morning buyer support flooded into the live cattle futures trade with April and June contracts finishing with triple digit gains. The April contract quickly moved above 119.00 per hundred weight finishing at 119.77. Similarly the June contract broke through resistance of 110.00 per hundredweight as additional buyer support slowly stepped into the market at the higher price levels.

Feeder cattle settled .17 to .90 higher as light buyer support trickled back into the feeder market. The support in the feeder cattle trade remained under the aggressive buyer activity in the live cattle markets, and appears to be shifting the trend seen over the last couple of weeks from leading the upward market surge.

Feeder cattle receipts at the Oklahoma National Stockyards totaled 6700 head on Monday. Feeder steers and heifers traded mostly steady to 3.00 higher. Steer and heifer calves trading on a limited test, except for the heavier calves bringing 2.00 to 3.00 higher. Demand for both feeder cattle and calves remains moderate to good especially for heavier feeder cattle that require less time in the feed yards. Feeder steers medium and large 1 averaging 667 pounds brought 140.65 per hundredweight. 667 pound heifers traded at an average of 129.68.

Lean hogs settled unchanged to 1.17 lower as moderate to firm market pressure developed through the complex with June through August having triple digit losses following a lack of commercial buying support stepping back into the complex The early mixed trade in the complex was unable to draw additional buyer interest into the market.

The pork carcass cutout value was down .50 at 80.96 FOB plant. Only the ham and rib primal were higher.

Barrows and gilts in the Iowa/Minnesota direct trade closed .27 higher at 66.91 weighted average on a carcass basis, the West was up .30 at 66.89, and nationally the hog market was .22 higher at 66.12. Missouri direct base carcass meat price was steady from 58.00 to 60.00. Illinois direct hogs on a live basis were steady from 40.00 to 49.00. Sows in Illinois 1.00 higher from 30.00 to 43.00.

Monday and Tuesday’s hog trade was a bit surprising in the way it sported a firm undertone. Perhaps buyers sense numbers tightening a bit over the next several weeks.

The hog slaughter was estimated by USDA at 444,000 head, 11,000 more than last week, and 15,000 greater than last year.