Market News

Feeder cattle sell higher at Monday auction

Feedlot country was quiet on Monday afternoon following the distribution of the new showlists. The late July offering appears to be somewhat larger than last week. Although asking prices are not well defined, a few producers have priced cattle around 168.00 to 170.00 in the South and 255.00 to 270.00 in the North. The slaughter totaled 111,000 head, 4,000 below last week, and 7,000 smaller than a year ago.

Boxed beef cutout values were higher on moderate demand and light offerings. Choice beef was up 1.92 at 259.30, and select cuts were 1.84 higher at 256.17.

Chicago Mercantile Exchange live cattle contracts were 1.70 higher to 72 lower. The nearby contracts opened significantly higher but quickly attracted long liquidation and speculative selling. The trade remained volatile through much of the session. Perhaps not surprising given the thin air that typically accompanies record prices according to John Harrington at DTN. Floor talk is blaming nervous ties to wholesale beef demand. Can it be sustained at current levels? August settled .05 lower at 159.05, and October was down .72 at 159.07.

Feeder cattle settled 122 to 200 points higher. Feeder contracts also retreated from early highs, but most contracts held triple digit gains through the close. The tight implications of the midyear herd inventory released on Friday was certainly supportive of the generally bullish case. August was 1.92 higher at 220.17 and September was up 1.95 at 221.20.

Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 4800 head. Compared to     last week feeder steers and heifers are selling 2.00 to 6.00 higher. Steer and heifer calves were mostly 5.00 to 10.00 higher compared to the previous week’s light test. Demand is very good for all classes of feeder cattle. The quality was typical of the summer, plain to average. Feeder steer calves weighing 550 to 575 pounds ranged from 246.00 to 262.50. 500 to 550 pound heifer calves brought 240.00 to 247.00.

Lean hogs settled mostly lower. Lean futures appeared to be on the mend through midsession, but selling interest resurfaced tied in part to another round of lower packer bids in the country. Cattle bulls trimming their sails also made it tougher on the lean contracts. August settled .05 higher at 123.67 and October was down .65 at 106.62.

Barrows and gilts in the Iowa/Minnesota direct trade closed 2.99 lower at 122.38 weighted average on a carcass basis, the West was down 2.84 at 122.36, and the East was 1.28 lower at 121.14. Missouri direct base carcass meat price was steady to 4.00 lower from 116.00 to 118.00. Barrows and gilts at Midwest markets on a live basis were steady to 2.00 lower from 88.00 to 95.00.

The pork carcass cutout value was down .85 at 130.94 FOB plant.

The recent combination of sharply higher beef prices and significantly lower pork prices should soon cause retailers and food managers to “wake up” to the superior value and featuring opportunity of pork.

The Monday hog kill was estimated at 397,000 head, 25,000 more than last week and 42,000 greater than last year.