Market News

Cattle showlists are smaller

Feedlot country was typically quiet on Monday afternoon. The new showlists are generally smaller than the previous week, with only Nebraska showing more ready steers and heifers. Some asking prices are around 125.00 plus in the South and 195.00 plus in the North. However, for the most part not much has been seen in the way of bids or asking prices. The cattle slaughter is estimated by USDA at 106,000 head, 3,000 below last week, and 9,000 head smaller than 2014.

Boxed beef cutout values were lower to sharply lower on light to moderate demand and offerings. Choice beef was down 1.80 at 203.97, and select was down 2.31 at 199.65.

Chicago Mercantile Exchange live cattle futures closed 42 to 115 points lower. Strong gains late last week across the complex created lackluster interest through the live contracts. Losses remained moderate as prices wandered higher and lower on either side of steady for much of the session. The softness in beef values in the morning report was unable to bring aggressive liquidation back into the market but also quickly cooled any interest of buyers stepping back into the market. October settled .95 lower at 122.12, and December was down 1.15 at 130.25.

Feeder cattle ended the session 32 to 137 lower. Feeder cattle showed some instability in a narrow to moderate range as prices bounced back and forth between moderate losses and moderate gains. Traders continued to focus on the lack of support in live cattle markets. A portion of the losses were tied up with early week position taking following the aggressive gains on Friday. October was down 1.37 at 178.12, and November was 1.00 lower at 173.52.

Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 6,800 head Compared to last week, feeder steers and heifers were not established in the early rounds. Steer and heifer calves opened 10.00 to 15.00 lower. The early demand was moderate. The bulk of the supply has been average to attractive calves. Feeder steers medium and large 1 weighing 550 to 600 pounds traded from 180.00 to 191.00 per hundredweight. 500 to 575 pound heifers brought 173.00 to 179.50.

Lean hogs settled 112 points higher to 65 lower with only the two nearby contracts lower. The focus through the complex continued to be on the ability to sustain support in both pork and cash hog values, but without some underlying spillover support from the cattle market it is uncertain momentum the pork complex will be able to maintain. October settled .35 lower at 73.00, and December was down .65 at 64.72.

Barrows and gilts in the Iowa/Minnesota direct trade closed .15 higher at 71.59 weighted average on a carcass basis, the West was up .10 at 71.53, and the national report was .22 lower at 70.55. Missouri direct base carcass meat price was steady to 1.00 higher at 64.00. Midwest hogs on a live basis were steady to 3.00 higher from 44.00 to 60.00.

The pork cark carcass cutout value was up 1.64 at 87.17 FOB plant. The belly primal was over $11.00 higher.

Although processing margins are excellent, the season is more likely to serve-up more market hogs than fewer over the next 30-60 days.

The Monday hog kill was estimated at 435,000 head, 9,000 more than last week, and 8,000 greater than last year.