Market News

Cash cattle trade was slow to develop

The cash cattle trade remained poorly developed late into the afternoon on Friday. Other than a handful of trade in Nebraska and Iowa from 242.00 to 244.00 the country remained very quiet. Asking prices were around 159.00 to 161.00 in the South and 245.00 plus in the North. The weekly cattle slaughter at 572,000 head is 1,000 more than last week, but 53,000 less than last year.

Chicago Mercantile Exchange live cattle contracts settled 95 to 300 points higher. Traders overlooked recent pressure in wholesale beef values as they focused on the still tight supplies of cattle and beef available to fill both the domestic and export demand. October settled 3.00 higher at 158.45, and December was up the 3.00 limit at 162.10.

Boxed beef cutout values were lower on choice and steady on select on light to moderate demand and moderate offerings. Choice boxed beef was down 1.45 at 237.66, and select was up .14 at 225.48.

Feeder cattle ended the session 260 to 300 points higher. The ability for cash trade to hold out until the end of the week helped to draw additional underlying support to the market as well as expectation of increased noncommercial stepping into the market, potentially on a long term basis. October was up 3.00 at 233.10, and November 3.00 higher at 231.60.

Feeder cattle receipts at Missouri auctions this past week totaled 24,950 head. Compared to the previous week, feeder steers and heifers sold mostly steady to 5.00 higher. The supply was made up of mostly mid to heavy weight calves with some instances of 10.00 higher on quality feeders around 600 pounds. The supply of yearlings was much lighter and a few northern auctions did quote spots of steady to 3.00 lower than the last auctions held two weeks ago which had much larger offerings. Feeder steers, medium and large 1 averaging 624 pounds traded at 257.01 per hundredweight. 626 pound heifers brought 225.99.

Lean hog contracts settled 87 higher to 60 points lower with only October and December in the black. The hog contracts held moderate losses through most of the session as traders still concentrated on the potential of increased long-term hog numbers in the hogs and pigs report. But trade volume and overall price pressure was kept limited as most of the aggressive adjustments had already been seen earlier in the week. October was up .20 at 106.52, and December was up .87 at 94.47.

There was moderate hog market activity with moderate to good demand. Barrows and gilts in the Iowa/Minnesota direct trade closed 1.26 higher at 108.95 on a carcass basis, the West was up 1.34 at 108.66, and the East was not reported due to confidentiality. Missouri direct base carcass meat price was steady from 95.00 to 100.00.

The pork cutout value was down .28 at 118.63 FOB plant.

Even with all the talk about uncertain demand and potential supply growth, pork values continue to appreciate day after day as buyers remain focused on accessing market ready product at the current price range. This is expected to continue to help bring a sense of stability into the complex over the near future.

The weekly hog slaughter was estimated at 2,095,000 head. 45,000 more than last week, but 92,000 less than last year.