Market News

Cattle futures and beef values were lower on Tuesday

The cash cattle market was not tested on Tuesday afternoon with both bids and asking prices poorly defined. A few feedlot managers have priced steers and heifers around 157.00 to 158.00 in the South, and 248.00 to 250.00 in the North. Significant trade volume will probably be delayed until late in the week. The kill totaled 115,000 head, 1,000 less than last week, and 10,000 smaller than a year ago.

Boxed beef cutout values were lower on light demand and light to moderate offerings. Choice boxed beef was down 2.19 at 252.91, and select was 2.66 lower at 243.91.

Chicago Mercantile Exchange live cattle contracts settled 40 to 132 points lower. The lack of developing support through the morning and a fear of further pressure was the main driver in the markets on Tuesday. Trader interest seemed very confident of turning markets higher in the early trade. However, a lack of follow through support and a quick reversal in feeder cattle futures quickly turned futures lower. August settled 1.10 lower at 150.50 and October was down 1.32 at 147.22.

Feeder cattle ended the session 87 to 237 points lower. Feeders experienced significant losses on Tuesday. The aggressive price swing through the complex was near $4.00 a hundredweight, following strong triple digit gains during overnight trade that eroded to triple digit losses in some contracts. Little has changed fundamentally in the market, with a momentum shift being the culprit that seemed to drive the market lower. August settled .87 lower at 217.15, and September was down 1.82 at 214.25.

Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 4691 head. Compared to last week, feeder steers and heifers were steady to 4.00 higher. Steer and heifer calves mostly 4.00 to 6.00 higher. Demand was moderate to good and improved some from last week. Quality was plain to average. Feeder steers medium and large 1 averaging 771 pounds brought 220.49 per hundredweight. 688 pound heifers averaged 214.65.

Lean hogs settled 60 points higher to 27 lower with only the two front months in the red. Of all the livestock markets the lean trade was the most stable. The focus through the complex had less to do with any new information or shifts in pork values or cash hog prices, than it does the underlying pressure flooding into the market following cattle prices that do not seem to establish a foothold. This could continue to erode buyer support over the near term. October settled .27 lower at 94.82, and December was down .25 at 88.62.

There was slow hog market activity with light demand on Tuesday afternoon. The Iowa/Minnesota direct trade closed 2.30 lower at 99.54 weighted average on a carcass basis, the West was down 2.19 at 99.56, and barrows and gilts in the East were not reported due to confidentiality. Missouri direct base carcass meat price was 2.00 to 3.00 lower from 95.00 to 98.00. Midwest hogs traded steady to instances of 2.00 and 3.00 lower from 67.00 to 80.00 live basis.

The pork carcass cutout value was 1.36 lower at 109.66 FOB plant. Bellies were lower and loins and ribs were higher.

Tuesday’s hog kill was estimated at 407,000 head, 1,000 less than last week, and down 25,000 from last year.