Market News

Southern cattle trade may be completed

The cash cattle market remained sluggish on Thursday with bids redeveloping in the North. A handful of cattle were reported selling in Iowa at 160.00 per hundredweight, on the low end of the range seen earlier in the week. Bids through the rest of the area are 160.00 to 161.00 with some additional cattle potentially needing to still be moved before the end of the week in order to fill procurement lists for next week. Southern trade may be completed for the week. The kill was estimated at 114,000 head even with last week, but 1,000 more than last year.

Boxed beef cutout values are lower on light to moderate demand and offerings. Choice beef is .98 lower at 189.77, and select is down 1.00 at 178.94.

Live cattle contracts closed .30 to 1.57 lower on the Chicago Mercantile Exchange on Thursday, but all contracts settled above the early session lows. The inability for traders to break out of the wide market range established during the month of September has created a lethargic market condition in which commercial traders are willing to remain on the sidelines.

Feeder cattle ended the session .72 higher to .95 lower Light gains held through most of the morning, although traders continued to limit interest as seller activity stepped back into the market. The lack of buyer support late in the week had little to do with market pressure and more to do with no trade volume redeveloping at the end of the month.

Feeder cattle receipts at the Springfield, Missouri Livestock Marketing Center totaled 1,515 head on Wednesday. Compared to last week steer calves were 6.00 to 10.00 lower, heifer calves traded 5.00 to 8.00 lower, yearlings 5.00 to 6.00 lower. The demand was moderate to light on a moderate supply. Feeder steers medium and large 1 weighing 725 pounds averaged 126.94 per hundredweight. Feeder Holsteins large 1 weighing 635 pounds brought 87.65. Feeder heifers weighing 580 pounds averaged 117.22.

Sheep receipts at the Sioux Falls Regional Livestock at Worthing, South Dakota totaled 1495 head. Slaughter lambs were 7.00 to 10.00 lower. Feeder lambs sold with a lower undertone. There was light to moderate demand for slaughter lambs, with the best demand for shorn as frequent heavy rains have caused plenty of mud. Just a limited offering of feeder lambs were met with moderate demand. Slaughter lambs shorn choice and prime 2-3 weighing 140 pounds brought 149.68 per hundredweight. Medium and large 1-2 feeder lambs weighing 85 pounds traded at 140.82 per hundredweight.

Lean hogs settled .17 to .40 higher as narrow gains held as buyers were able to push front month October contracts to $52.00 per hundredweight. All of the nearby contracts held narrow to moderate gains, which was supportive given that cash markets and pork values continue to work lower.

Barrows and gilts in the Iowa/Minnesota direct trade closed .46 lower at 49.23 weighted average on a carcass basis, the West was down .54 at 49.13, and nationally the market was down .62 at 48.93. Missouri direct base carcass meat price was steady from 45.00 to 47.00. Midwest hogs on a live basis closed steady from 27.00 to 36.00.

The pork carcass cutout value was 1.12 lower, 74.05 FOB plant.

The Thursday hog kill was estimated by USDA at 434,000 head, the same as last week, but 5,000 more than last year.