Market News

Cattle pressured by on feed numbers

At the Chicago Mercantile Exchange, cattle futures closed sharply lower following Friday’s Cattle on Feed report, which confirmed big placements and increased marketings.  Trade volumes are sluggish at best.  Beef wholesale values at the midday didn’t help prices and feeder cattle were also pressured by today’s higher move in corn.  December live cattle closed $1.75 lower at $117.10 and February live cattle closed $1.65 lower at $123.02.  January feeder cattle closed $2.17 lower at $149.55 and March feeder cattle closed $2.07 lower at $148.05.

Direct cash cattle trade is quiet following the distribution of new showlists – which is pretty typical for a Monday.  The short-week offering looks to be slightly larger than last week with just Texas showing more ready numbers.  Some preliminary bids of $117 in Kansas have started to surface.  Asking prices are not well defined yet – and significant trade volume could be delayed until Wednesday.

Boxed beef closed lower on Choice and steady on Select on light to moderate demand and moderate offerings.  Choice closed $1.06 lower at $206.18 and Select closed $.20 higher at $188.05.  Select rib, chuck, round, and loin cuts were all steady to firm while Choice rib and round cuts were steady to weak.  The Choice/Select spread increased to $18.13.

At the Joplin Regional Stockyards in Missouri, compared to last week steer and heifer calves are steady to $3.00 lower.  Yearlings are $3.00 to $6.00 lower.  Receipts at midsession are 11,000 head – up significantly from last week and down slightly on the year.  The USDA says demand was moderate for a heavy supply and a there was a good offering of yearling cattle.  Feeder supply included 59 percent steers and 66 percent of the offering was over 600 pounds.  Feeder steers, Medium and Large 1’s 500 to 600 pounds were $153.00 to $178.00 and Medium and Large 1’s 600 to 700 pounds were $153.00 to $164.75.  Feeder heifers, Medium and Large 1’s 500 to 600 pounds were $139.00 to $156.50 and Medium and Large 1’s 600 to 700 pounds were $137.00 to $152.50.

Estimated cattle slaughter is 120,000 head – up 3,000 on the week and 4,000 on the year.

Lean hog futures closed sharply higher on strong support from the wholesale value at midday and short covering.  The big moves could spark additional long-term support and increase buyer activity this week.  Look for trade volume to slow as the holiday week progresses.  December lean hogs closed $1.37 higher at $62.02 and February lean hogs closed $1.40 at $68.47.

Cash hogs closed lower.  This week’s shortened slaughter schedule could work to support the wholesale market.  However, that could set up larger kill totals for next week and into early December – which could add additional pressure to prices.

Barrows and gilts at the Iowa/Southern Minnesota closed $1.04 lower with a range of $54.00 to $58.25 and an average of $56.31; the Western Corn Belt closed $.65 lower with a range of $51.00 to $58.25 and an average of $56.37; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct was $.50 lower with a range of $51.00 to $58.25 and an average of $56.46.

Butcher hogs at the Midwest cash markets are $1.00 to $4.00 lower at $35.00 to $36.00.

At the Interior Missouri Direct, barrows and gilts are steady at $52.00 on light to moderate supply and demands.  Sows are $1.00 to $3.00 lower at $32.00 to $42.00.

At Illinois, slaughter sows are $1.00 lower at $35.00 to $46.00 with moderate demand for moderate to heavy offerings.  Barrows and gilts are weak at $36.00 to $44.00 with moderate demand for moderate offerings.

Pork value closed sharply higher – up $1.31 at $82.27.  The primals were mostly higher with the strongest gains in the butt, the belly, and the rib.

Estimated hog slaughter is 465,000 head – up 1,000 on the week and 21,000 on the year.