Market News

Cattle trade at higher prices

USDA Mandatory reported cattle trading and demand was moderate in Kansas Friday afternoon. Compared to last week, live sales were 2.00 higher at 147.00. Trading was light in Nebraska on moderate demand. Compared to the previous week, live and dressed sales were 2.00 higher at 147.00 to 148.00 live, and 234.00 dressed. Dressed sales in Iowa were 1.00 to 2.00 higher at 234. The weekly cattle kill was estimated at 532,000 head, 7,000 less than last week, and 43,000 head smaller than 2014.

Boxed beef cutout values were steady on light to moderate demand and offerings. Choice beef was down .09 at 233.25, and select was .03 lower at 229.29.

Chicago Mercantile Exchange live cattle contracts ended the day mostly 30 to 80 points lower. Only the August contract finished in positive territory. The lack of support through the rest of the market was based on end of the month positioning before traders leave for the weekend and close the book on the month of July. August settled .47 higher at 145.70, and October ended .52 lower at 145.92.

Feeder cattle were 50 to 205 points lower on Friday as traders continued to look for additional direction as they exited the market for the month of July. The ability to draw buyers back into the market at the end of the week was extremely limited adding to the uncertainty about additional market support over the near future. August was down .50 points at 210.72, and September was .85 lower at 207.75.

Feeder cattle receipts at Missouri auctions this week totaled just 8,815 head. Compared to last week, feeder steers and heifers sold with a weak to lower undertone. The feeder supply was light, it has actually been a very long time since weekly receipts have been this short on a non-holiday week. High heat has been one of the main factors responsible for curtailing the transportation of livestock. Feeder steers medium and large 1 averaging 668 pounds traded at 231.83 per hundredweight. Heifers’ averaging 623 pounds brought 217.01.

Lean hogs settled 70 to 197 points lower. Sharp losses developed as traders continued to back away from the complex at the end of the month. Trade volume was sluggish, and that appeared to add to the aggressive price pressure. August was down 1.17 at 78.50, and October was 1.97 lower at 63.72.

Barrows and gilts in the Iowa/Minnesota direct trade closed at 75.56 weighted average on a carcass basis, with no price comparison, the West was down .78 at 75.23, and nationally the market was .15 lower at 74.42.

Pork carcass cutout value was up 1.25 at 87.48 FOB plant. Loins and bellies were significantly higher.

Average prices for beef and pork fell in grocery-store advertisements this week, according to the latest Wall Street Journal retail-meat survey. The 15-cut average for beef decreased to $5.62 a pound from $5.80 a pound last week and $5.91 a year earlier, the Journal survey found.

The five-cut average for pork prices slid to $2.95 a pound from $3.22 last week. Prices were lower than the $3.59-a-pound average a year earlier.

USDA estimated the weekly hog kill at 2,137,000 head, 36,000 greater than last week, and 267,000 more than last year.