Market News

Bids and asking prices far apart

Feedlot country remained untested on Thursday with just a few bids in Nebraska at 226.00 on a dressed basis. The bids were a long ways from asking prices of 236.00 in the North, Southern producers are asking 150.00. Despite their short bought status it would appear significant trade is delayed until Friday. The cattle kill totaled 109,000 head, 2,000 more than last week, but 7,000 less than last year.

Boxed beef cutout values were steady to weak on light demand and offerings. Choice beef was down .03 at 244.21, and select was .48 lower at 233.12.

Live cattle contracts on the Chicago Mercantile Exchange settled 175 to 222 points higher. Strong gains held triple digit rallies through the entire cattle complex on Thursday. Although the market slipped from the morning highs, buyer support held through the close. Aggressive short covering and pre cash positioning were the main features in the market. August settled 2.22 higher at 144.65, and October was up 2.17 at 142.55.

Feeder cattle ended the session 225 to 295 points higher. August went off the board at noon .27 lower at 210.00. September futures traded over 200.00 per hundredweight for much of the session and a close over $2.00 higher for the day was a tall order to ask of the complex, especially given the market weakness through the early part of the week. September settled at 200.35 up 2.25, and October was up 2.72 at 197.07.

Feeder cattle receipts at the Huss Platte Valley Auction, Kearney, Nebraska totaled 2155 head on Wednesday. Compared to two weeks ago, 900 pound steers sold 7.00 lower, not enough comparable offerings in other weights of steers and heifers for a market trend. Overall demand was moderate to good for load lots of steers and front end pregnancy open heifers. Feeder steers medium and large 1 averaging 909 pounds traded at 206.02 per hundredweight. 894 pound fleshy heifers brought 172.75.

Lean hogs settled 40 points higher to 25 lower. Early losses in the complex turned narrowly mixed in a choppy session. With the cattle market and aggressive moves in the stock market gaining most of the attention, there was very little interest being shown in the rest of the complex. The recent pressure in pork values could have further impact through the end of the month. October was up .05 at 67.05, and December was down .25 at 62.05.

Barrows and gilts in the Iowa/Minnesota direct trade closed 1.22 lower at 73.25 weighted average on a carcass basis, the West was down 1.26 at 73.05, and nationally the market was 1.09 lower at 72.58. Missouri direct base carcass meat price was steady from 67.00 to 68.00. Midwest hogs on a live basis trended steady from 45.00 to 51.00.

The pork carcass cutout value was down 1.14 at 84.69 FOB the plant. Bellies were nearly $6.00 lower.

For the week ending August 22, Iowa barrows and gilts averaged 277.2 pounds, 1.7 pounds heavier than the previous week and 4.9 pounds lighter than 2014.

Thursday’s hog slaughter at 428,000 head was up 1,000 from last week, and 17,000 more than last year.