Market News

Cattle futures closed sharply lower

Thanks to sharply lower live and feeder cattle futures on Friday it looks like the cash trade is done for the week. A moderate to active trade took place on Wednesday at mostly 114.00 to 115.00 in the South and 175.00 in the North. A light trade was reported in parts of Nebraska and Iowa on Thursday at generally steady money with Wednesday. The weekly cattle kill was estimated at 616,000 head, 65,000 greater than the previous week, and 60,000 more than last year.

Boxed beef cutout values ended the day lower on choice and steady on select on light to moderate demand and offerings. Choice beef was down .79 at 189.72, and select was .23 lower at 172.70.

Chicago Mercantile Exchange live cattle contracts closed .85 to 2.50 lower in an unexpected spasm of weakness that continued to turn a blind eye toward higher feedlot sales and work significantly lower before the weekend break. Trade talk wants to blame demand worries especially once wholesale business stretches beyond mid-month.

Feeder cattle contracts ended the session on Friday 2.67 to 3.17 lower. Feeders fell into the same defensive mode as their live counterparts. The aggressive selling was tied to long liquidation and concerns over late year beef demand.

Feeder cattle receipts at Missouri auctions this week totaled 49,472 head. Compared to last week steers and heifers sold steady to 5.00 higher with some instances of steer calves 5.00 to 10.00 higher. Several local barns actually saw two weeks’ worth of gains as many were closed for the shortened holiday week. All fall the auctions have wondered just where all the cattle were or when they were going to show up in town. It actually turned out to be the largest volume of any single calendar week this year. Feeder steers medium and large 1 averaging 624 pounds traded at 137.72 per hundredweight. 668 pound heifers’ brought 116.93.

Lean hogs settled .52 higher to .32 lower. The spot December received the best support from buyers thanks to this week’s consistent appreciation of country sales.

Barrows and gilts in the Iowa/Minnesota direct trade closed .42 higher at 47.60 weighted average on a carcass basis, the West was up .37 at 47.55, and nationally the market was .77 higher at 47.13. Missouri direct base carcass meat price was steady from 37.00 to 40.00. Midwest hogs on a live basis closed steady from 25.00 to 30.00.

The pork carcass cutout value was 1.06 lower at 73.26 FOB plant.

Feeder pig receipts nationally this week totaled 106,491 head, significantly more than last week and last year. Early weaned pigs were steady to firm. All feeder pigs were mostly steady. The demand was moderate for moderate offerings. Early weaned pigs on a 10 to 12 pound basis brought 22.50 to 44.50 on a per head basis. 40 pound pigs traded from 35.00 to 45.00 per head.

This week’s hog kill was estimated at 2,540,000 head, 398,000 more than the holiday week, and 127,000 above 2015.