Market News

Cattle asking prices are higher

The cash cattle market remains untested, and the first starter bids of the week have not appeared. Understandably asking prices are higher in the wake of greater packer spending on Friday and sharply higher futures on Monday. Some asking prices are around 151.00 to 152.00 in the South and 240.00 plus in the North. The cattle slaughter was estimated by USDA at 112,000 head, 2,000 more than last week, but 2,000 below a year ago.

Boxed beef cutout value are weak on light to moderate demand and moderate offerings. Choice down .51 at 233.48, and select is .66 lower at 228.17.

Live cattle contracts on the Chicago Mercantile Exchange (CME) settled mixed in a narrow range. The early support in the complex quickly eroded due to the lack of additional volume according to DTN’s Rick Kment. This left the nearby contracts hovering on either side of unchanged. The general lack of direction was not significantly impacted by the softness in beef values in the morning report. August settled .22 higher at 148.22, and October was up .10 at 148.20.

Early support in the feeder cattle markets eroded through the morning although trading ranges remained narrow in a mixed shift as short covering activity developed through the deferred contracts. This impacted trade activity through the entire complex and the lack of additional trade volume allowed for the light shift lower in most contracts. August settled .10 higher at 213.95, and September was unchanged at 210.82.

Feeder cattle receipts at the Joplin Regional Stockyards on Monday totaled 2009 head. Compared to a light test last week, steer and heifer calves were 2.00 to 5.00 higher, yearlings were steady to firm compared to the limited test last week. Demand was moderate for a light supply. Feeder steers medium and large 1 averaging 723 pounds traded at 222.26 per hundredweight. 728 pound heifers brought 199.66.

Lean hogs settled 22 to 202 points higher as aggressive support was apparent through the market as traders focused more on the direction of pork values early in the week, and the ability to continue to draw more attention on future demand through the month of August. Potentially this will help to build support through the fall. August settled 1.20 higher at 81.40, and October was up 2.05 at 67.35.

Barrows and gilts in the Iowa/Minnesota direct trade closed .56 lower at 76.08 weighted average on a carcass basis, the West was down .51 at 75.92, and the East was not reported due to confidentiality. Missouri direct base carcass meat price was steady to 1.00 higher from 71.00 to 72.00. Midwest hogs on a live basis were steady to 1.00 higher from 47.00 to 56.00.

The pork carcass cutout value was up .63 at 88.57 FOB plant. The belly primal was up 2.63.

While the belly primal has been on fire in recent weeks, time is about to run out on seasonal BLT demand.

Tuesday’s hog kill is estimated at 424,000 head, the same as last week, but 20,000 more than last year.