Market News

Livestock futures stage a turnaround and close higher

The cash cattle trade was dead quiet on Friday afternoon with business apparently done for the week. A few cattle traded in Texas at 155.00 live and 156.00 in Western Nebraska. Negotiated trade volume totals look no better than moderate, but maybe the formulated numbers will be seen as significant when data is available on Monday. The weekly kill at 577,000 head, is 4,000 more than the previous week, but 47,000 less than 2013.

Boxed beef cutout values close lower on choice and steady on select on light demand and light to moderate offerings. Choice beef was down 1.20 at 255.54, and select was .19 lower at 248.38.

Chicago Mercantile Exchange live cattle contracts settled 40 to 230 points higher as light buyer support trickled back into the futures. The uncertainty about short term beef values continues to keep nearby contracts with limited buying interest, while the deferred issues futures held strong triple digit gains. Features included short covering, technical buying and the premium status of the cash markets. August settled .60 higher at 150.60 and October was up .40 at 147.75.

Feeder cattle ended 177 to 250 points higher and again turned into the bright spot of the livestock complex. This was the market in the complex to secure triple digit gains in both nearby and deferred contracts as the focus is once again being put on tight supplies and strong demand by feeders to replenish inventory through the fall months. August settled 2.20 higher at 217.22, and September was up 2.05 at 216.10.

Feeder cattle receipts at Missouri auctions this week totaled 19,330 head. Compared to last week, feeder steers and heifers sold steady to 10.00 lower. Light weight feeders found the least pressure this week and generally as weights increased so did price declines. Supply was light at most auctions and overall quality was not anything exceptional. Feeder steers medium and large 1 averaging 617 pounds traded at 244.98 per hundredweight. 630 pound heifers brought 226.93.

Lean hogs settled 70 to 150 points higher with only spot October in the red. The market bounced higher and lower in a wide range for much of the session. The focus remained on the lack of support in the cash markets as well as softness through the pork carcass value. October settled .30 lower at 94.95, and December was up 1.30 at 89.05.

The hog market was not well established on Friday with slow market activity and light demand. Barrows and gilts in the Iowa/Minnesota direct trade closed 1.03 lower at 103.65 weighted average on a carcass basis, the West was 1.28 lower at 103.50, and the East was down 2.43 at 102.77. Missouri direct base carcass meat price was steady from 101.00 to 103.00. Midwest markets were not well tested with barrows and gilts 3.00 to 5.00 lower from 73.00 to 80.00 on a live basis.

Pork trading was sharply lower at 111.80 down 4.39 FOB plant, with all primals lower.

Hog buyers are having absolutely no problem in gathering numbers with lower bids this week. Such carefree procurement testifies both to ample country offerings and extreme defensiveness on the part of producers.

The weekly hog slaughter at 2,017,000 head is 98,000 more than the previous week, but 168,000 less than 2013.