Market News

Cattle traded at lower prices on Friday

USDA Mandatory reported cattle trading was light to moderate in Kansas on Friday afternoon on light to moderate demand. Compared to last week, live sales were 2.00 to 3.00 lower at 159.00. A few dressed sales in Nebraska traded 3.00 to 5.00 lower than last week at mostly 245.00.The weekly cattle slaughter was estimated at 571,000 head, 21,000 fewer than last week and 60,000 less than 2013.

Boxed beef cutout values were sharply lower on light demand and light to moderate offerings. Choice beef was down 1.17 at 243.71, and select was 2.48 lower at 229.61.

Chicago Mercantile Exchange live cattle contracts settled 2 to 87 higher with only December lower. Trade was mixed through the complex for much of the session. Modest support was evident in the February and April contracts, although most of the trader’s attention continued to be based on the direction of the cash cattle trade as well as the potential shifts in cattle supplies reported in the cattle on feed report.  October settled .02 higher at 155.62, and December was down .22 at 158.70.

Feeder cattle ended the session 62 to 102 points higher. Nearby contracts were able to slowly but steadily gain momentum and close higher. Traders concentrated on the potential of lighter than expected placements in feedlots in August. Traders appeared satisfied to hold the gains into the weekend. September settled .70 higher at 230.60 and October was up 1.02 at 230.60.

Feeder cattle receipts at Missouri auctions this week totaled 25,876 head. Compared to last week feeder steers and heifers sold steady to 5.00 higher with some heavy weight calves seeing instances of 10.00 higher. The story of the feeder cattle market is pretty much a continuation of what has been seen over the last several weeks. Given the potential of a likely record harvest many are looking to find cattle to feed in the coming months. Feeder steers, medium and large 1 averaging 622 pounds traded at 259.29 per hundredweight. 619 pound heifers brought 240.71.

Lean hogs settled 300 points higher to 20 lower but mostly in the black. Futures jumped from near limit losses, but reversed the trend and closed limit higher in the lead month. The nervous movement of the market created some uncertainty and questioning any fundamental reasoning about longer term supply and demand. With the exception of the nearby contract gains, it was hard to find much activity through the rest of the complex allowing current positions to hold into the weekend. October settled the 3.00 limit higher at 106.97 and December was up 1.05 at 94.85.

Barrows and gilts in the Iowa/Minnesota direct trade closed 1.00 higher with a weighted average of 105.82 on a carcass basis, in the West the market was up .86 at 105.52, and Eastern hogs were .45 lower at 99.77. The Missouri direct base carcass meat price was steady from 90.00 to 97.00 in a light test.

The pork carcass cutout value FOB plant ended the day .68 lower at 113.54.

The U.S. dollar continues to rally on expectations of higher rates down the road with the dollar index hitting a 14-month high on Thursday. Needless to say, such a trend is negative for U.S. meat exports.

The weekly hog kill was estimated at 2,050,000 head, down 3,000 from last week and 128,000 less than last year.