Market News

Boxed beef cutouts end sharply higher again

Feedlot country was at a standstill on Tuesday afternoon. Clearly, significant trade volume will be delayed until at least Wednesday or Thursday. Some showlists have been priced around 168.00 to 170.00 in the South and 265.00 plus in the North. The slaughter totaled 115,000 head, 1,000 more than last week, but 9,000 less than last year.

Boxed beef cutout values were sharply higher on good demand and moderate offerings. Choice beef was up 2.04 at 261.34, and select was 2.86 higher at 259.03.

Live cattle futures were mixed on the Chicago Mercantile Exchange on Tuesday. The nearby contracts were under moderate pressure. Trade volume was slow as bulls and bears probably will stall until cash prospects become clearer. Boxed beef cutout values were sharply higher at midday lending support to the complex. August settled .27 lower at 158.77, and October was unchanged at 159.07.

Feeder cattle ended the session 62 to 127 points higher supported by follow through buying and the recent $7.00 surge of the cash index. The market is at a stage where every tick higher effectively rewrites the record book. August settled 1.25 higher at 221.42, and September was up 1.25 at 222.45.

Feeder cattle receipts at the Sioux Falls Regional Livestock at Worthing, South Dakota totaled 1722 head on Wednesday. Compared to two weeks ago. Feeder steers were 10.00 to 15.00 higher. Heifers were too lightly tested in recent weeks to make a good comparison. There was very good demand for all weights of feeder cattle. Buyers were eager bidders after last week’s sharp run-up in the cash fed market and the subsequent rise in live and feeder cattle futures. Feeder steers averaging 733 pounds traded at 239.32 per hundredweight. 595 pound heifers brought 243.00.

Lean hogs settled 50 to 227 points lower. The lean futures continue to come unglued apparently oblivious to either the spot cash premiums or the ongoing waves of bullishness in the cattle complex. Fourth quarter contracts are holding up better than either spot August or 2015 contracts, but that doesn’t seem to be saying much. August settled 2.22 lower at 121.45, and October was down .55 at 106.07.

Barrows and gilts in the Iowa/Minnesota direct trade closed .34 lower with a weighted average of 122.04 on a carcass basis, the West was down .21 at 121.97, and the East was .40 lower at 120.74. Missouri direct base carcass meat price was steady to 1.00 lower from 115.00 to 118.00. Butcher hogs at Midwest markets were steady to 2.00 lower with an instance of 6.00 lower from 82.00 to 95.00 on a live basis.

The pork carcass cutout value was .19 higher at 131.13 FOB plant. Bellies were nearly $10.00 lower.

While the bullish threat tied to PED has lost much of its sting this summer, it’s still quite possible that the spring pig crop was significantly cut in size, less than the winter pig crop, but still substantial by this devastating disease.

The Tuesday hog kill was estimated at 400,000 head, 2,000 more than last week, but 11,000 less than a year ago.