Market News

Packers are short bought

Cattle country was typically quiet on Monday following the distribution of the new showlists. This week’s offering appears to be generally larger than last week, especially in the South. Some of the showlists are priced around 131.00 to 132.00. Short bought packers may have to shop earlier than normal this week, possibly by Wednesday.

Boxed beef cutout values ended higher on the choice and weak on the select on light to moderate demand and offerings. Choice was up 1.25 at 205.65, and select was down .64 at 194.68.

Chicago Mercantile Exchange live cattle contracts settled 82 to 127 points lower. Live cattle contracts eroded at midday based on follow through pressure in the feeder cattle markets. The lack of additional buyer support on the last trading session of November created additional concerns of increased late day pressure filtering into the complex before the closing bell. December settled 1.77 lower at 130.05, and February was down 1.50 at 132.55.

Feeder cattle ended the session 275 to 327 points lower. The lack of support in cash markets late last week as well as no additional buyer support in the live cattle market allowed the market to erode on the last day of November. January was 3.27 lower at 162.75, and March was down 3.25 at 160.42.

Oklahoma National Stockyards had receipts of only 3,000 cattle on Monday. Numbers were very light due to heavy rains and ice over the weekend limiting the movement of cattle. Feeder cattle were not tested early and there were limited comparable sales, calves were steady.

The Ozarks Regional Stockyard at West Plains, Missouri held a cow and bull auction Saturday evening. Steady rains across the area did not dampen the attendance for the special cow sale. A standing room only crowd was on hand to purchase a variety of packages of mature bred cows and bred heifers. Bred cows medium and large 1, 3 to 6 years old weighing 1189-1419 pounds in second and third stage brought 2250.00 to 2385.00 per head, 18 month to three year old bred heifers brought 2050.00 to 2200.00 per head. Replacement bulls 2-4 years old, a few Angus traded from 2500.00 to 3100.00.

Lean hogs settled mixed from 1.00 higher to 87 points lower with December through April in the red. Light pressure was apparent through the market as late month positioning backed away from holiday buyer support. December settled .30 lower at 58.45, and February was down .87 at 56.80.

Barrows and gilts in the Iowa/Minnesota direct trade closed .73 higher at 52.28 weighted average on a carcass basis, the West was up .87 at 52.25. Missouri direct base carcass meat price was steady at 43.00 some interests are still out of the market. Midwest hogs on a live basis closed steady with an instance of 2.00 to 4.00 lower from 28.00 to 36.00.

The pork carcass cutout was up 1.50 at73.90 FOB plant.

With pork packers currently killing with huge $30-plus a head margins, the potential exists for some of this margin to transition over into better pricing for live hogs, especially as ready barrow and gilt numbers tighten through the winter quarter ahead.

The Monday hog kill was estimated by USDA at 438,000 head, 2,000 less than last week, and 7,000 more than last year.