Market News

Beef closes steady to higher

DTN reported a few cattle sold in Nebraska on Tuesday at 163.00, $4.00 lower than last week’s weighted average. Private sources reported a few bids in the South at 104.00. The rest of cattle country remained quiet. Some packer’s started the week short bought and we could see significant trade develop earlier than last week. The kill totaled 113,000 head, 1,000 below last week, but 1,000 more than last year.

Boxed beef cutout values were higher on the choice and steady on the select on light to moderate demand and offerings. Choice beef was up 1.18 at 188.22, select 179.58, down .07.

Live cattle contracts on the Chicago Mercantile Exchange settled 1.50 to 3.00 lower on Tuesday. The pressure continued in the market with traders pulling back from a week ago market highs. Even though prices are still above the contract lows set in early September, the aggressive tone seen during the last two market sessions has quickly damaged the market structure and could quickly change the price direction through the end of the month.

Feeder cattle settled 1.22 to 4.50 lower. The market held triple digit losses through the close following the entire cattle complex lower as traders remained under pressure. Aggressive long liquidation and technical selling were the main features.

Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 5,200 head. Compared to last week, feeder steers and heifers were 5.00 to 8.00 lower, with the exception of cattle over 850 pounds mostly steady. Steers calves were steady to 5.00 lower, the decline was on un-weaned calves. Heifer calves over 500 pounds were 4.00 to 10.00 lower, under 500 pounds mostly steady. Feeder steers medium and large 1, calves weighing 625 pounds brought 131.51 per hundredweight. 705 pound heifers traded at 130.70.

Lean hogs closed .95 to 2.15 lower. Lean hog contracts were locked in a mixed to narrow trading range through much of the session as the focus in livestock markets quickly shifted to panic selling taking place in the cattle complex. The sharply lower to limit losses in the cattle complex weighed on the lean hog futures.

Barrows and gilts in the Iowa/Minnesota direct trade closed .57 lower with a weighted average of 50.34 on a carcass basis, the West was down .60 at 50.27, and nationally the market was .43 lower at 49.96. Missouri direct base carcass meat price was steady from 45.00 to 47.00. Midwest hogs on a live basis were steady from 29.00 to 36.00.

The pork carcass cutout value was down 1.04 at 77.57 FOB plant.

Cash hog prices are expected to continue to erode with aggressive packer procurement schedules once again focused on maintaining extremely profitable margins. Cash spending continues to remain steady to weak with easy access to any and all needed hogs to meet daily chain speed.

The hog slaughter was estimated at 440,000 head, 1,000 more than last week, and 12,000 greater than last year.