Market News

Cash cattle trade may be completed for the week

Bids and asking prices on feedlot cattle were poorly defined on Wednesday afternoon. While some cattle remain on showlists it is certainly possible business may be completed for the week. Although it is possible Thursday may see another light round of business before traders break for the long holiday weekend. The kill was estimated by USDA at 112,000 head, 1,000 less than last week, but 3,000 greater than last year.

Boxed beef cutout values were steady on choice, lower on select on light to moderate demand and moderate to heavy offerings. Choice beef was down .13 at 196.49, select 1.46 lower at 189.71.

Live cattle contracts on the Chicago Mercantile Exchange closed .15 to .90 lower with only the expiring August higher by .45. The expiration of the August contract, caused some aggressive market shifts as traders remained stuck in the market., The remainder of the complex pushed lower unable to hold the strong gains seen on Tuesday. Overall the trade activity was light.

Feeder cattle ended the session.15 to 2.00 lower as the strong buyer surge which developed on Tuesday once again failed to gain follow-through interest. Traders quickly backed away from previous gains. Trade volume remained light which limited additional interest in the market, but may have kept prices from dropping even lower.

Feeder cattle receipts at the Ozarks Regional Stockyards at West Plains, Missouri totaled 1,667 head on Tuesday. Steer calves traded 5.00 to 10.00 lower with yearling steers steady to 2.00 lower. Heifer calves were 3.00 to 5.00 lower with the undertones on lightly tested yearling heifers steady to weak. Nearby feeder futures fluctuated 6.75 during the sale and closed 3.58 higher, leaving those selling later in the day a little less disappointed. Demand was moderate early in the day and improved throughout the sale. Feeder steers medium and large 1 averaging 767 pounds brought 121.72 per hundredweight. 656 pound heifers at 126.93.

Lean hogs settled .80 higher to .25 lower with October through April contracts higher, with October up the most. Trade remained directionless through most of the morning session. There were narrowly mixed price shifts that could allow increased stability at the end of the month, which may spark additional interest during early September.

There was slow hog market activity with light demand on Wednesday afternoon. Barrows and gilts in the Iowa/Minnesota direct trade closed .54 lower at 59.83 weighted average on a carcass basis, live basis ranged from 46.25 to 46.95 with no price comparison. Western hogs were down .56 at 59.77, nationally the market was .63 lower at 59.20. Missouri direct base carcass meat price was steady from 54.00 to 56.00. Midwest hogs on a live basis closed steady from 35.00 to 50.00.

The pork carcass cutout value was up .59 at 78.00 FOB plant.

Despite the fact that lean hog contracts have moved back toward the top of the lateral trading range, the structure of the futures market is bearish with the spot October contract discounted to the index while the December contract remains discounted to October.

Hog slaughter on Wednesday was estimated at 435,000 head, the same as last week, but 1,000 more than last year.