Market News

Feedlot country generally quiet

Feedlot country remained generally quiet on Friday afternoon. A few sales were reported in Colorado and Texas with prices generally 4.00 lower than last week at 134.00. A few dressed sales were reported in Kansas at 210.00. Most of the showlists remained priced on a higher basis, around 138.00 to 140.00 in the South and 210.00 in the North. More trade could develop before the end of the day. The weekly kill was estimated at 563,000 head, 10,000 more than last week, and 5,000 less than 2014.

Boxed beef cutout values were lower to sharply lower on light to moderate demand and moderate to heavy offerings. Choice beef was down 3.20 at 215.66, and select was 1.40 lower at 207.25.

Live cattle contracts moved lower on Friday morning as support quickly eroded. But the market staged a comeback at midday and settled moderately higher on late week positioning. December settled at 134.92 up .52, and February was .25 higher at 137.15.

Feeder cattle contracts settled unchanged to mostly 1.00 lower with the fall 2016 contracts the exception down the most. Feeder futures bounced higher and lower within a moderate trading range through much of the session as traders continued to adjust positions ahead of the weekend after the volatile week of trade and aggressive market tumble. November settled unchanged at 181.62, and January .65 lower at 172.02.

Feeder cattle receipts at Missouri Auctions this week totaled 32,169 head. Compared to last week feeder steers and heifers sold 5.00 to 10.00 lower with many late week sales fully 10.00 to 15.00 lower. Markets started the week optimistic with some auctions seeing markets higher than the previous week. The optimism vanished by mid-week as futures markets spiraled downward and left many buyers and sellers kind of scratching their heads trying to find an explanation as to why. 7.00 losses in in live cattle futures and mostly 10.00 losses in just a couple of days resulted in more pressure than auctions could shrug off by late week. 10 lower. Feeder steers medium and large 1 weighing 572 pounds averaged 208.08 per hundredweight. 525 pound heifers brought 189.52.

Lean hogs settled 40 points lower to 120 points higher with the late summer and fall contracts up the most. Futures bounced higher and lower in a narrow range for much of the session. The December contract hovered on either side of 55.00 per hundredweight which continued to try to establish a contract low at the end of the week. December settled at 55.00 down .40, and February was .30 lower at 58.30.

Barrows and gilts in the Iowa/Minnesota direct trade closed 1.41 lower at 53.48 weighted average on a carcass basis, the West was down 1.43 at 53.35, and the East was .99 lower at 53.35. Missouri direct base carcass meat price was 4.00 to 5.00 lower from 48.00 to 51.00. Midwest hogs on a live basis closed steady to 2.00 lower from 34.00 to 50.00.

The pork carcass cutout value was .50 lower at 75.28 FOB plant. The belly primal was over $5.00 lower.

Falling lean hog futures and deepening pools of red ink are realities that are probably further checking herd expansion plans.

The weekly hog kill was estimated at 2,360,000 head. 17,000 less than last week, but 133,000 more than 2014.