Market News

Cash and futures livestock lower

The feedlot cattle business was slow on Thursday afternoon following the development of light trade volume earlier in the day in the North. Dressed trade appears to be generally $ 5.00 lower than last week from 205.00 to 206.00, live business at 130.00 is more like $6.00 to 7.00 lower. The Southern market remains untested. Asking prices have eroded significantly in the face of another round of triple digit losses in cattle futures. The kill was estimated at 110,000 head, 3,000 more than last week, but 5,000 less than 2014.

Boxed beef cutout values were lower on light demand and light to moderate offerings. Choice beef was 1.28 lower at 218.84, and select was down 1.04 at 208.65.

Chicago Mercantile Exchange live cattle contracts settled 155 to 290 points lower with expanded trading limits seen in nearby contracts. Even though the expanded trading limits were not hit, the focus on lower prices sparked concerns of additional market weakness. The market remained focused on expectations of lower cash cattle trade developing and further beef value losses. December settled 2.82 lower at 134.40, and February was down 2.75 at 136.90.

Feeder cattle were 3.70 to 5.00 lower. As expanded limits came into play during midmorning trade, traders posted losses of $5.00 to 6.00 per hundredweight in nearby feeder cattle futures. Concerns through the both the feeder cattle and live cattle contracts point to further weakness in both technical and fundamentals that could point to additional market pressure. November settled 4.52 lower at 181.62, and January was down 5.00 at 172.67.

Feeder cattle receipts at the Bassett Livestock Auction Market in Nebraska totaled 3615 head on Wednesday. Not enough offerings from two weeks ago for an accurate price comparison. The demand was very good for reputation Sandhill raised offerings with several repeat buyers in the seats Feeder steers medium and large 1 averaging 572 pounds averaged 213.85 per hundredweight. 572 pound heifers traded at 199.53.

Lean hogs settled 5 to 197 points lower. Support developed in the market in the nearby contracts early in the session but quickly eroded on the pressure in cattle futures. Even setting new contract lows is not enough to limit seller activity as prices keep going deeper through the week. December settled 1.97 lower at 55.40, and February was down 1.42 at 58.60.

Barrows and gilts in the Iowa/Minnesota direct trade closed 1.28 lower at 54.85 weighted average on a carcass basis, the West was down 1.41 at 54.82, and the East was 1.73 lower at 54.50. Missouri direct base carcass meat price closed 1.00 to 7.00 lower from 52.00 to 56.00. Midwest hogs on a live basis ended the day steady to 1.00 lower from 36.00 to 50.00.

The pork carcass cutout value was down .63 at 75.85 FOB plant.

For the week ending October 31, Iowa barrows and gilts averaged 282.7 pounds, .5 pounds heavier than last week but still 2.5 pounds lighter than 2014. Seasonally, weights seem to be growing slower than normal.

Thursday’s hog slaughter was estimated at 436,000 head, 2,000 more than last week, and 7,000 greater than 2014.