Market News

Cattle trade delayed

Cattle country was quiet on Wednesday afternoon with just a few scattered bids noted in Kansas and Texas at 143.00. Significant trade volume will be delayed until Thursday or Friday. Asking prices are around 148.00 in the South and 236.00 plus in the North. The kill was estimated by USDA at 105,000 head, 1,000 more than last week, but 10,000 below 2014.

Boxed beef cutout values were steady to firm on moderate to fairly good demand and moderate offerings. Choice beef was up .47 at 232.62, and select was .20 higher at 229.07.

Live cattle contracts settled 35 points higher to 32 lower on the Chicago Mercantile Exchange on Wednesday. All 2015 contracts closed lower while deferred contracts saw light gains as buyer support firmed at midsession and helped to erase some early market pressure. The tone of the market remained defensive although there was a sense of hope that gains on Tuesday could be able to build some additional traction into the market needed to propel buyer support not only at the end of July but also through early August. August settled .12 lower at 144.92, and October was down .32 at 146.47.

Feeder cattle ended the day 22 to 95 points higher as buyer support continued to gain ground through the feeder market as traders attempted to dig out of the recent pressure evident over the last week. The slow but steady support in beef values created some momentum through the complex, and helped to push prices higher. August settle .22 higher at 211.47, and September was up .47 at 208.95.

Feeder cattle receipts at the Philip Livestock Auction at Philip, South Dakota totaled 3166 head on Tuesday. Price trends not available as the sale has not been recently reported due to seasonally low receipts. There was very good demand for the Anniversary Yearling and Fall Cattle Special featuring several long strings, load lots, and packages of feeder cattle. All sold on a very active market. Feeder steers averaging 884 pounds brought 212.74 per hundredweight. 824 pound heifers traded at 203.70.

Lean hogs settled 102 points higher to 42 lower. The strong support seen in the nearby contracts faded a bit through late morning following fundamental pressure in both pork values and cash prices. Buyers continued to focus on increased activity through the end of the month. The October contract held a triple digit gain, but the nearly 14.00 per hundredweight discount to the August contract seemed to be the main driver of buyer support. August settled .37 higher at 79.85, and October was up 1.02 at 66.07.

There was moderate hog market activity with moderate to good demand on Wednesday. Barrows and gilts in the Iowa/Minnesota direct trade closed .44 higher at 76.81 weighted average on a carcass basis, the West was up .59 at 76.74, and Eastern hogs closed at 74.05 without a price comparison.

The pork carcass cutout value was down .24 at 85.97 FOB plant.

There seems to be a growing consensus that this week’s hog kill will not be much smaller than last week, probably around 2.12 million head, 13% greater than last year. The June 1 Hogs & Pigs report appears to be a bust, understating third quarter market hog supplies.

The Wednesday hog kill is estimated at 422,000 head, 1,000 more than last week, and 15,000 greater than 2014.