Market News

Boxed beef was sharply higher but pork was lower

Cattle country was quiet on Monday afternoon following the distribution of the new showlists. The new offering appears to be mixed, somewhat larger in the North and smaller in the South. Generally speaking, ready numbers continue to be historically tight. A few preliminary asking prices have been suggested around 158.00 plus in the South, and 250.00 plus in the North. The kill totaled 115,000 head, 3,000 more than last week, but 4,000 smaller than a year ago.

Boxed beef cutout values are higher on moderate to good demand and light to moderate offerings. Choice boxed beef was up 2.07 at 250.52, and select was 1.43 higher at 244.08.

Chicago Mercantile Exchange live cattle contracts settled 25 to 132 points higher. Futures held strong gains throughout the Monday session. The most aggressive support was evident in the nearby contacts. Traders remained focused on tight cattle supplies and the need to gain access to live cattle while beef values continue to appreciate at a rapid pace, August settled 1.32 higher at 152.95, and select was up .92 at 155.25.

Feeder cattle ended the session 95 to 147 points higher supported by stronger live cattle futures and that sparked additional buying interest in the feeder complex. Traders continued to look for additional direction from outside markets. The softness in the grain complex also lent support to the market. August settled 1.37 higher at 213.02, and September was up 1.47 at 213.77.

Feeder cattle receipts at the Joplin, Missouri Regional Stockyards on Monday totaled 4,000 head. Compared to last week, steer calves opened 5.00 to 15.00 higher, heifer calves were steady, and yearlings had no early test. Demand was good on a moderate supply. Feeder steers medium and large 1 weighing 500 to 600 pounds ranged from 255.00 to 290.00. 5 to 6 weight heifers brought 225.00 to 236.00.

Lean hogs settled 30 points higher to 197 lower as strong pressure redeveloped in the August futures contract with August experiencing tripe digit losses. The remainder of the pit remained mixed in narrow to moderate ranges as there seemed to be a lack of direction early in the week across the complex. The continued pressure in cash hog markets got very little attention as traders continued to concentrate on potential longer term supply levels with pork demand changes through the end of the year. August settled 1.97 lower at 125.10 and October was down .85 at 112.70.

Barrows and gilts in the Iowa/Minnesota direct trade closed .01 higher at 127.65 weighted average on a carcass basis, the West was down .17 at 127.43, and Eastern markets were .57 lower at 126.57. Missouri direct base carcass meat price was steady to 3.00 lower from 119.00 to 122.00. Midwest hogs ended the day 4.00 lower to 3.00 higher from 88.00 to 96.00 on a live basis.

The pork carcass cutout value FOB plant ended sharply lower at 134.99, down 2.57.

Last week’s hog slaughter once again reflects the severe pig death loss last winter caused by PED, totaling no more than 1.833 million head, down 1.4% from the week before and down 8.9% from 2013.

 

The hog kill on Monday was estimated at 372,000 head, 9,000 more than last week, but 23,000 less than last year.