Market News

Cattle futures rebound on short covering

On the Chicago Mercantile Exchange cattle futures made new highs for the week.  The overall tone of the market is weak with the upcoming Cattle on Feed report.  Traders’ focus on Tuesday turned to short covering activity.  Live cattle ended the day up $.72 at $106.72 and October live cattle closed up $1.87 at $107.72.  August feeder cattle closed $2.27 higher at $142.07 and September feeder cattle ended the day up $2.90 at $142.05.

Direct cash cattle trade got underway with just a few bids in the South around $106 and a few scattered deals in parts of the North today – but DTN says not enough to establish a trend.  When trade picks up asking prices are expected to start at around $112 in the South and $177 plus in the North.   The first big indication of trade will likely be the Fed Cattle Exchange on Wednesday morning.  However, significant trade volume could potentially be delayed until the release of Friday’s Cattle on Feed report.

Boxed beef cutouts were steady to weak on light to moderate demand and moderate offerings.  Choice was down $.06 at $193.03 and Select closed $.73 lower at $190.89.

Estimated cattle slaughter is 118,000, down 1,000 from last week and up 5,000 from a year ago.

At the Tulsa Livestock Auction in Oklahoma receipts totaled 1,536 head, down more than 500 from last week and more than 1,300 head lower than a year ago.  Steers were mostly steady compared to last week and heifers were $4.00 lower.  The USDA says the quality is average and the demand was good.  The total offering included 23 percent over 600 pounds and more than 40 percent heifers. Medium and Large 1 steers 500 to 548 pounds were $150.00 to $160.00.  Medium and Large 1 steers 700 to 745 pounds were $121.00 to $131.00.  Medium and Large 1 heifers 450 to 498 pounds were $137.00 to $147.00.  Medium and large 1 heifers 550 to 595 pounds were $130.00 to $140.00.

At the Manchester Live Auction in Iowa total receipts were 777 head.  Compared to last week beef steers were $6 to $7 lower, with a top of $111.75 and high yield prime and choice steers were $108.00 to $111.75.  Beef heifers were $6 to $7 lower, with a top of $111.75 and high yielding prime & choice heifers were $108 to $111.75.  Holstein steers were $4 lower, with a top of $93.00 and high yielding prime & choice Holsteins were $84 to $93.

Lean hogs ended the day mixed in a wide range, nearby contracts closed lower following additional strong market pressure.  The lack of support from the fundamentals led to technical pressure in the October and December contracts.  October lean hogs closed $.80 lower at$63.87 and December lean hogs closed down $.80 at $59.05.

Cash hogs ended the day lower.  The trade continues to worry about supplies of market ready numbers.  Saturday slaughter numbers are projected at 132,000 head.  Barrows and gilts at the Iowa/Southern Minnesota closed $.69 lower with a range of $67.00 to $71.50 and an average of $70.87; the Western Corn Belt closed $.72 lower with a range of $67 to $71.50 and an average of $70.82; the Eastern Corn Belt was not reported due to confidentiality; the National Daily Direct closed $1.06 lower with a range of $67.00 to $71.50 and an average of $70.66.

Butcher hogs at the Midwest cash markets are steady at $48 to $50.

At the Interior Missouri Direct trade was $1 to $7 lower compared to Friday’s close at $64 to $68.  The USDA says supply and demand are light to moderate.  Sows are $1 to $5 lower at $53 to $68

At Illinois, sows are $3 lower at $53 to $67 with light to moderate demand for moderate offerings.  Barrows and gilts are $3 lower at $46 to $51 with moderate demand for moderate offerings.

Estimated hog slaughter is 449,000, up 3,000 from last week and up 13,000 from last year.

Pork cutout ended the day down $1.42 at $89.14 pressured by the $12.24 drop in bellies.  All other primals ended the day higher.