Market News

Beef and pork values end the week lower

The cattle business was limited on Friday afternoon, but buying interest did appear to improve in parts of the North. Some bids in Western Nebraska and Colorado seemed to approach steady money with last week. Asking prices on unsold cattle firmed following the way live cattle futures closed sharply higher. The weekly cattle kill is estimated at 590,000 head, 13,000 above last week, but 46,000 less than 2013.

Boxed beef cutout values were weak to lower on light demand and light to moderate offerings. Choice beef was down .69 at 249.77 and select was 1.16 lower at 239.66.

The August 1 cattle on feed report looks neutral to slightly negative according to DTN analysts. The placement figure of 7% less turned out to be slightly larger than the average trade guess. The marketing total turned out to be slightly smaller at 9% less. On feed numbers were down 2% from last year.

Live cattle contracts on the Chicago Mercantile Exchange settled 45 to 220 points higher. Moderate to strong buyer support quickly redeveloped on Friday morning. The support in the front months was expected to help draw additional focus on the reduced numbers in feed yards after the cattle on feed report was released. But the focus on an oversold market situation was likely the main momentum keeping prices elevated through the close. August settled 2.20 higher at 151.85, and October was up 1.45 at 147.00.

Feeder cattle ended the session 42 to 150 points higher. Most of the attention in the feeder pit was centered on the cattle on feed report released after the close of trade. Most traders expected strong placement drops to be seen in the report, but given the weakness in the complex over the last several days, even expected losses of 10% from last year levels may still be viewed as bearish to the market. August settled .90 higher at 215.10 and September was up 1.47 at 210.90.

Feeder cattle receipts at Missouri auctions this week totaled 20,042. Compared to last week, feeder steers and heifers sold unevenly steady. Locally several markets reported sales trending 10.00 lower while just as many others had prices 5.00 to 10.00 higher. Generally the heifer market found pressure while steers under 450 pounds suitable for grazing as well as a very limited supply of yearlings found the most buyer interest. Feeder steers medium and large 1 averaging 618 pounds averaged 248.60 per hundredweight. 627 pound heifers brought an average of 228.03.

Lean hogs settled 150 points higher to 75 lower with only October and December lower. The nearby contracts showed evidence of position squaring following the strong support which developed on Thursday, and pre-weekend selling. The late week surge has helped to bring some solid support into deferred futures even though prices were unable to hold significant morning gains. October settled .75 lower at 92.87, and December was down .40 at 87.15.

The pork carcass value was 2.58 lower FOB plant at 103.60, with all primals lower.

Barrows and gilts in the Iowa/Minnesota direct trade closed .57 lower at 95.30 weighted average on a carcass basis, the West was down .71 at 95.10, and the East was 2.55 lower at 94.22. Missouri direct base carcass meat price closed steady from 95.00 to 98.00.

The weekly hog kill at 1,991,000 head is 26,000 less than last week, and down 213,000 from last year.