Market News

Cattle trade at a standstill

The cash cattle trade turned into a standstill on Friday afternoon following a light trade in the North in the morning at 167.00 to 168.00, roughly $2.00 to 3.00 lower than last week. Psychology has experienced a severe reversal tied to the extreme volatility of the cattle futures market. The market staged a recovery near the close and rallied as much as 400 points above the session lows. Such a recovery has worked to firm feedlot asking prices once again. It was a very confusing day and significant trade may not develop until very late in the day. The weekly cattle kill is estimated at 592.000 head, 12,000 less than the previous week, but 18,000 greater than 2015.

Boxed beef cutout values were weak to lower on light to moderate demand and moderate offerings. Choice beef 186.81, down .56, select 178.81, down .81.

The cattle on feed report released after the close of trade looks generally neutral compared to trade expectations. On feed up one-percent, placements in August up fifteen-percent, and August marketing’s eighteen-percent higher.

Live cattle contracts on the Chicago Mercantile Exchange closed.10 to .70 lower, with only October up .20, but off the day’s lows. Prices collapsed in the morning and at one point were 2.25 to 2.72 lower. A weekly close for the October contract below 104.40 would have been very troubling. The market seemed to be fueled by technical selling and nervousness about total meat supplies through the fourth quarter.

Feeder cattle ended the session .87 lower to .22 higher, with only October and November in the black. At one point contracts had ranged from 1.60 to 3.90 lower. As feedlot profit potential looks more and more remote, feeder issues seem to look more overpriced by commercials.

Feeder cattle receipts at Missouri Auctions this week totaled 18,460 head. Compared to last week, feeders sold unevenly steady to 5.00 higher. The best demand and most price gains were noted on mid to heavy weight steers weaned and without too much flesh. The supply of feeders was moderate. Seasonal fall runs really have not developed yet which has some starting to question if those rumored cattle are really out there in the country or if producers are just so depressed with current prices they are trying to wait it out. Feeder steers medium and large 1 averaging 672 pounds brought 142.45 per hundredweight. 625 pound heifers averaged 131.91.

Lean hogs settled mostly lower by .20 to .40 cents with only December up .30 at 48.90. It appears late week short covering/profit taking worked to minimize losses.

Barrows and gilts in the Iowa/Minnesota direct trade closed .13 lower at 51.83 weighted average on a carcass basis, the West was .24 lower at 51.30, and nationally the market was .39 lower at 50.88. Missouri direct t base carcass meat price closed steady from 47.00 to 49.00.

The pork carcass cutout value was down 1.15 at 76.92 FOB plant.

Feeder pig receipts nationally this week totaled 107,967 head. Early weaned pigs traded steady, and all feeder pigs were mostly steady on light receipts. Demand was light to moderate for moderate to heavy offerings. Early weaned pigs, 10 to 12 pound basis 5.00 to 25.0-0 peer head. 40 pound basis pigs 23.00 to 33.00 peer pig.

The weekly hog kill was estimated by USDA at 2,456,000 head, 103,000 more than last week, and 173,000 greater than last year.