Market News

Meat values end weak to lower

A few starter bids in the cattle were reported by private sources to DTN on Tuesday afternoon, at 125.00 live in the South and 195.00 to 197.00 in the North. However, significant trade volume is not expected before Thursday or Friday. Some of the showlists are priced around 130.00 plus in the South, and 205.00 plus dressed in the North. The kill totaled 112,000 head, 2,000 more than last week, but 3,000 less than last year.

Boxed beef cutout values were weak to lower on light to moderate demand and offerings. Choice beef was down 1.05 at 223.27, and select was .33 lower at 206.82.

Chicago Mercantile Exchange live cattle contracts settled 15 to 117 points lower. Cattle futures backed away from early session lows as additional focus was placed on the movement of the cash cattle activity which has actually developed bids, although there is no trade activity. There was also some position squaring evident.

Feeder cattle settled 5 to 132 points lower as the market backed away from early losses. The market ended nearly $1.00 per hundredweight from the session lows based on little more than follow-through market activity. The overall tone of the market remained sluggish with the underlying tone soft.

Feeder cattle receipts at the Sioux Falls, SD Regional Livestock at Worthing totaled. 3082 head. Compared to last week feeder steers traded steady to 5.00 lower with some as much as 6.00 to 10.00 lower. Heifers were steady to 2.00 to 6.00 lower with some as much as 10.00 lower. The demand was moderate to good, with the best demand for load lots of steers weighing 900 to 950 pounds and heifers 750 to 800 pounds. Feeder steers averaging 821 pounds brought 144.5 per hundredweight. 821 pound heifers traded at 135.56.

Lean hogs closed 50 lower to 60 points higher with front month June up the most. There was little support seen in the cash or pork values through the week. The potential to drive markets lower through the end of the month may continue to push prices across the entire complex and bring even more softness to the entire market.

Barrows and gilts in the Iowa/Minnesota direct trade closed .47 lower at 74.91 weighted average on a carcass basis, the West is down .45 at 74.87, and nationally the market is .29 lower at 74.33. Missouri direct base carcass meat price is steady from 64.00 to 69.00. Midwest hogs on a live basis closed steady from 45.00 to 60.00.

The pork carcass cutout value was down .62 at 83.04. Bellies and picnics were significantly lower.

The supply of pork in freezers as of April 30 was somewhat above expectations at 635.4 million pounds, compared to estimates of 633.7 million pounds. Additionally, frozen chicken stocks were reported at 896.1 million pounds, up five percent from the same time last year.

The hog kill was estimated at 430,000 head, 1,000 less than last week, and down 3,000 from last year.