Market News

Livestock futures close higher

Packer inquiry in the cattle remained spotty on Friday afternoon with just a few defensive bids noted in parts of Nebraska. Trade volume totals look light again, but cash trade is probably done for the week. With live markets losing close to $10.00 again, the fed trade has imploded by more than $20.00 since Labor Day, The weekly cattle kill was estimated at 571,000 head, 3,000 below last week and 6,000 short of a year ago.

Boxed beef cutout values were lower on light to moderate demand and heavy offerings. Choice beef is down 1.78 at 205.77, and select was 1.85 lower at 201.36.

Chicago Mercantile Exchange live cattle contracts settled 10 to 167 points higher as traders tried to stabilize the market going into the weekend. The October futures led the nearby contracts higher. The focus through the entire market continued to be trying to establish support levels, and the ability to spark additional beef demand through the next several weeks. October settled 1.67 higher at 123.07 and December was up 1.37 at 131.37.

Feeder cattle ended the session 210 to 270 points higher. The bounce higher was not only impressive based on the ability to push prices over 2.00 higher, but that prices sustained gains through the close, but is also a break from previous sessions. The steady buying helped to spark some additional underlying support at the end of the week. October settled 2.10 higher at 179.50, and November was up 2.40 at 174.52.

Feeder cattle receipts at Missouri auctions this week totaled 21,391 head. Compared to last week, steers weighing less than 650 pounds sold 10.00 to 15.00 lower with steers over 650 pounds and all weights of heifers 5.00 to 10.00 lower. There were several instances where local reporters mentioned cases of some feeders trending 20.00 or even 30.00 lower on some feather weight calves. The supply of feeders was moderate with several loads of yearling cattle in the offering. Feeder steers medium and large 1 averaging 624 pounds traded at 197.90 a hundredweight. 625 pound heifers brought 183.82.

Lean hogs settled 20 to 102 points higher with renewed support seen through the lean hog complex. Although futures closed off the day’s highs traders still focused on the recent support in market fundamentals as well as the ability to continue to move pork through the early fall months. October settled .72 higher at 73.35, and December was up .85 at 65.37.

Barrows and gilts in the Iowa/Minnesota direct trade closed .13 higher at 71.44 weighted average on a carcass basis, the West was up .27 at 71.18, and nationally the market was down .20 at 70.23. Missouri direct base carcass meat price closed steady to 1.00 higher from 63.00 to 64.00.

The pork carcass cutout value was down .88 at 85.53 FOB plant.

Feeder pig receipts nationally last week totaled 69,014 head, down almost 40,000 head from the previous week. Early weaned pigs and all feeder pigs were steady to 2.00 per head higher. Demand was light to moderate for moderate offerings. Early weaned pigs on a 10 to 12 pound basis ranged from 28.00 to 36.00. 40 pound basis from 42.00 to 51.00. Prices quoted are on a per head basis delivered to the buyer’s farm. Prices include freight and fees on a farm to farm basis.

The weekly hog kill was estimated at 2,270,000 head, 6,000 less than last week, but 19,000 greater than last year.