Market News

Cattle country was quiet

Packers may want to put cash chores to bed before breaking for the holiday on Thursday, but so far they show no signs of getting serious in that regard. The first bids of the week have yet to be revealed. A few showlists have been priced around 132.00 plus in the South and 200.00 to 202.00 plus in the North. Light to moderate business should surface sometime on Wednesday. The kill totaled 110,000 head, 3,000 more than last week, but 7,000 less than last year.

Boxed beef cutout values are higher on moderate to fairly good demand and moderate to heavy offerings. Choice beef is up 1.02 at 203.81 and select was 1.19 higher at 192.24.

Live cattle contracts on the Chicago Mercantile Exchange settled 65 to 192 points lower on Tuesday with a lack of market direction and light volume. December was down 1.92 at 130.25, and February was 1.70 lower at 132.50.

Feeder cattle finished the day 37 to 127 points lower. The lack of volume during the week created increased market volatility across the entire cattle complex. January settled .72 lower at 164.67, and March was down .47 at 163.00.

Superior Video Auction 24,500 head. Compared to the last sale November 6^th, feeder steers were 10.00 to 15.00 lower. There was not a trend established for heifers. Steer and heifer calves traded mostly 8.00 lower with instances of 25.00 lower. The recent gains in cattle futures have done little to increase demand for feeder cattle. Feeder steers in the South Central states medium and large 1 averaging 662 pounds for current delivery averaged 184.53. Steers in the North Central states averaging 625 pounds for December delivery brought 182.00 per hundredweight.

Lean hogs were unchanged to 77 points lower. Overall volume was sluggish ahead of the holiday break. There was some support in the market early as some traders stepped back into the market. But the firm support eroded leaving all contracts except for far deferred lower. December settled .22 lower at 57.22, and February was down .77 at 57.50.

Barrows and gilts in the Iowa/Minnesota direct trade closed .04 lower at 51.88 weighted average on a carcass basis, the West was also down .04 at 51.84, and the East at 49.81 had no price comparison. Missouri direct base carcass meat price was steady at 44.00. Midwest hogs on a live basis were steady from 39.00 to 40.00.

The pork carcass cutout value was up 1.32 at 73.62 FOB plant.

The pork carcass value slumped into the week with price pressure evident on all primals except the ham. Given that last week’s hog kill of 2.4 million head was the largest since the week ending September 22, 2012, late November demand could continue to struggle in the face of formidable tonnage.

The hog kill was estimated at 438,000 head, 2,000 more than last week and 1,000 greater than last year.