Market News

Internet cattle trade lower

The Fed Cattle Exchange reported 8,014 cattle on the list today, with 3,401 head of those actually sold at generally 2.00 lower than last week from 109.00 to 112.00, with a weighted average price of 110.28. Asking prices on this week’s showlist remain poorly defined with some cattle priced close to 115.00 in the South and 175.00 in the North. There were a few bids on the table from 108.00 to 112.00 live and 170.00 dressed. The slaughter totaled 116,000 head, even with last week, but 5,000 more than last year.

Boxed beef cutout values closed lower on light to moderate demand and moderate offerings. Choice beef was down 1.57 at 188.94, and select 171.72, down 1.51.

Chicago Mercantile Exchange live cattle contracts settled .47 lower to .25 higher. The lack of support in the complex continued to be pulled back following the aggressive triple digit gains seen on Tuesday. . Traders remained generally on the sidelines, likely limiting overall trade pressure through midweek. Contract spreading was also done between cattle and hog markets given the aggressive market support in the hog complex over the last week.

Feeder cattle settled unchanged to .30 higher as moderate pressure held through the complex. The softness is creating concern that additional pressure may be seen through the entire cattle market, especially given the lack of support in cash cattle trade over the last couple of days. Short covering appeared to be the main feature of trade.

Cattle receipts at the Ozarks Regional Stockyards at West Plains, Missouri totaled 4,319 head on Tuesday. Compared to last week. Steers calves traded 3.00 to 6.00 lower with yearling steers steady to 5.00 higher. Heifer calves traded unevenly steady with yearling heifers steady to 2.00 higher. Demand was good on a heavy supply of mostly small drafts. Feeder steers medium and large 1 averaging 519 pounds brought 148.16 per hundredweight. 514 pound heifers brought 114.43 per hundredweight.

Lean hogs settled .72 to 2.27 higher. Sharp gains continued to develop through the lean hog futures following the aggressive moves higher in cash and pork cutout values. This market support continues to drive widespread interest from both commercial and investment traders willing to flood the market following the continued move off the market bottom over the last couple of months.

Barrows and gilts in the Iowa/Minnesota direct trade closed 1.81 higher at 52.01 weighted average on a carcass basis, the west is up 1.69 at 51.91, and nationally the direct market is 2.06 higher at 51.86. Missouri direct base carcass meat price steady to 1.00 higher from 39.00 to 40.00. Midwest hogs on a live basis were steady to 2.00 higher with an instance of 5.00 higher from 25.00 to 38.

The pork carcass cutout value was .62 higher at 7513 FOB plant in the afternoon report.

Some believe that this week’s hog slaughter could be as large as 2.5 million head, a mere 40,000 less than last week, and 70,000 more than 2015. We are not likely to run out of live inventory anytime soon.

The Wednesday hog kill was estimated at 440,000 head, 1,000 less than last week, but the same as last year.

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