Market News

Cattle trade at lower prices

USDA Mandatory reported cattle trading and demand was moderate in Western Nebraska, Colorado and Kansas on Friday. Compared to last week, live sales in Nebraska were 1.00 to 4.00 lower at 143.00 with limited sales up to 143.50. Compared to last week in Colorado live sales were 4.00 to 5.00 lower at 143.00. Kansas sales were 1.00 lower at 143.00. The weekly kill was estimated at 556,000 head, 11,000 more than the previous week, and 33,000 more than last year.

Boxed beef cutout values are weak on choice and steady on select on light to moderate demand and offerings. Choice beef is down .74 at 240.07, and select is down .05 at 228.39.

Chicago Mercantile Exchange live cattle contracts settled 20 to 112 points lower. There were narrow losses earlier in the session that expanded into full market pressure, and at one point all contracts held triple digit losses. The lack of support across the complex was evident as support seen on Thursday quickly discounted as the market struggled to hold front month prices above 140.00 per hundredweight. The market did show some recovery and ended off the day’s lows with October down 1.12 at 140.47, and December down 1.10 at 142.77.

Feeder cattle contracts ended 120 to 167 points lower. Just when feeder cattle contracts need to lock in additional buyer support following the move higher on Thursday, weakness quickly and aggressively developed moving prices lower. The softness in the complex had more to do with lack of longer term direction in the market, and traders focusing on the light trade volume seen Friday. September was down 1.20 at 201.35, and October was 1.62 lower at 195.70.

Feeder cattle receipts at Missouri Auctions this week totaled 19,082 head. Compared to last week, feeder steers and heifers sold mostly steady to 5.00 higher. Several sale barns are starting to see load lots of yearlings, mostly steers being offered as auctions transition to fall runs. Feeder steers medium and large 1 averaging 675 pounds averaged 222.05 per hundredweight. 672 pound heifers brought 201.94.

Lean hogs settled 7 to 67 points lower. Narrow trading ranges held through the hog futures complex with traders confining all activity through the morning between 20 cents lower to 20 cents higher. The softness in the cash market had very little impact in the nearby or deferred contracts. Traders are clearly focused on long term direction which may develop next week. October settled .30 lower at 69.15, and December was down .67 at 63.35.

Barrows and gilts in the Iowa/Minnesota direct trade closed .69 lower at 67.73 weighted average on a carcass basis, the West was down 1.22 at 67.27, and nationally the market was 1.10 lower at 69.05. Missouri direct base carcass meat price was steady from 61.00 to 62.00.

The pork carcass cutout value was down .06 at 85.31 FOB plant.

DTN reports, odds are starting to favor above normal corn and bean yields, likely to drive corn and meal sharply lower and thereby significantly stoke the fires of hog herd expansion.

This week’s hog kill at 2,171,000 is 43,000 less than last week, but 393,000 more than last year.