Market News

Cattle futures close higher but hogs were lower

Bids and asking prices in feedlot country were not well defined on Tuesday. There have been a few ready cattle priced around 107.00 to 108.00 in the South and 166.00 to 168.00 in the North. Many are watching for signs from the board, and trading interest may not develop until late in the week. The kill totaled 116,000 head, 1,000 more than last week, and 7,000 above last year’s total.

Boxed beef cutout values were lower on choice and higher on select on light to moderate demand and heavy offerings. Choice beef 183.11, down .81, select 168.63, up .91.

Live cattle contracts on the Chicago Mercantile Exchange settled unchanged to .75 higher with only the December contract down by .10. The futures trade was light on Tuesday with futures hovering in a narrow range for much of the session. Support came from short covering and ideas of cash stability.

Feeder cattle contracts ended the day .05 to .70 higher with November and January up the most as buyers stepped back into the market ahead of the November contract’s expiration on Thursday. Traders remained directionless for much of the session in light trade.

Feeder cattle receipts at the Tri-State Livestock Auction at Mc Cook, Nebraska totaled 2400 head. Compared to last week, steers trended steady to 6.00 lower and heifers were 2.00 6.00 higher. There was no comparison on yearling cattle. The demand was good on all weights. Feeder steers medium and large 1 averaging 880 pounds brought 132.21 per hundredweight. Heifer mates weighing 880 traded at 129.00.

Rock Valley, Iowa Hay Auction on Monday had 27 loads. The market was about steady with last Thursday’s sale, corn stalks were a little lower. Alfalfa, premium quality in large squares and rounds brought 102.50 to 107.50 per ton. Good large squares and rounds traded at 92.50. Alfalfa/grass mixed in good large rounds ranged from 87.50 to 97.40 per ton. Large rounds of cornstalks traded from 35.00 to 40.00.

Lean hogs settled .40 to 1.17 lower. Sharp losses developed through the lean contracts as traders quickly moved back into the complex as December contracts held triple digit losses near mid-session. The front month contract was pushed below 46.00 at one point but ended off the day’s low at 46.12.

Barrows and gilts in the Iowa/Minnesota direct trade closed .32 higher at 41.35 weighted average on a carcass basis, the West was up .42 at 40.83, and nationally the market was .10 lower at 40.64. Missouri direct base carcass meat price was steady from 36.00 to 37.00. Midwest hogs on a live basis were steady from 22.00 to 30.00.

The pork carcass cutout value74.14, down .52 FOB plant.

The strengthening of the U.S. dollar as the probability of higher late year interest rates increase represents bad news for U.S. exports of pork, beef, and chicken according to DTN.

The Tuesday hog slaughter was estimated by USDA at 442,000 head, the same as last week, but 5,000 more than last year.