Market News

Cattle futures were higher and hogs were lower

The cash cattle trade was at a standstill on Friday with business essentially done for the week. For the second consecutive week cash prices plunged sharply lower, nearly $20.00 since early June. Positively beef processing margins continue to balloon, theoretically encouraging packers to accelerate chain speed and procure greater cattle numbers. The weekly kill totaled 632,000 head, 4,000 above the previous week, and 24,000 greater than last year.

Boxed beef cutout values were sharply lower on choice, steady on select on light to moderate demand and offerings. Choice beef 239.75, down 3.13, select 216.72, down .20.

Live cattle on the Chicago Mercantile Exchange settled .32 to 1.00 higher after trading lower for much of the session pressured by sharp losses in the cash cattle trade and developing pressure in beef values. Traders positioned themselves ahead of the weekend break and ahead of the cattle on feed report released after the close of trade.

Feeder cattle ended the Friday session 1.35 to 1.50 higher as gains held through the close despite building pressure in the cattle markets. Trade volume was sluggish across the market as traders were willing to call it a week.

Feeder cattle receipts at Missouri auctions this week totaled 31,158 head. Compared to last week, steers sold steady to mostly 5.00 lower, with some instances of 10.00 lower, heifers sold steady to 5.00 lower. The supply of feeders was moderate with mostly 500 to 800 pound feeders. Light weight calves under 500 pounds were a very small part of this week’s offering. Feeder steers medium and large 1 averaging 622 pounds brought 161.22 per hundredweight. 625 pound heifers at 150.44.

Lean hogs settled .12 to 1.22 lower with only the July contract up .27. The aggressive late week pressure in the complex was focused on end of the week position taking despite fundamental support and strong cash and pork values. Light trade was evident through the session.

Barrows and gilt in the Iowa/Minnesota direct trade closed .31 lower at 86.38 weighted average on a carcass basis, the West is down .36 at 86.31, and nationally the market is .28 lower at 85.85. Missouri direct base carcass meat price is steady to 1.00 lower from 78.00 to 80.00.

Pork carcass cutout value was 1.63 higher at 101.15 FOB plant. All cuts were higher.

Feeder pig receipts nationally this past week totaled 90,371 head. Compared to last week early weaned pigs were mostly steady. All feeder pigs trended 1.00 per head lower. The demand was moderate for moderate offerings. Early weaned pigs on a 10 to 12 pound basis brought 15.00 to 30.00. 40 pound pigs 44.00 to 53.00. Prices quoted are on a per head basis delivered to the buyer’s farm.

The weekly hog kill was estimated at 2,144,000 head, 35,000 less than last week, but 48,000 more than last year.