Market News

Pork value down sharply

Cattle country was quiet on Tuesday afternoon, a few asking prices were noted around 165.00 to 166.00 in the South and 260.00 in the North. It is expected feedlot operators will lower their prices due to the significant fall in cattle futures. Bids of 252.00 on a dressed basis in Nebraska were reported to DTN by private sources. The kill totaled 114,000 head, 1,000 more than last week, but 8,000 less than last year.

Boxed beef cutout values were weak to lower on light demand and light to moderate offerings. Choice boxed beef was down 2.64 at 242.88, and select was .42 lower at 234.25.

Chicago Mercantile Exchange live cattle contracts settled the 300 point limit lower in all contracts. Now that prices have broken through the 100 day average, there appears to be a long way to fall before technical support can once again be a factor. The move lower does not erode the emphasis on long tern tight supplies, but for now traders have overlooked that argument. December at 158.97 and February 158.75 both 3.00 lower.

Feeder cattle ended the session in a perfect repeat of Monday’s move. Limit lower losses were seen through the complex since the opening bell of electronic trade. The aggressive pressure over the last week has created even more uncertainty about both short and long term market direction. January settled at 219.60, and March 215.20 both down the 3.00 limit.

Feeder cattle receipts at the Joplin, Missouri Regional Stockyards on Monday totaled 6575 head. Compared to last week, steers under 600 pounds were steady to 5.00 higher, over 600 pounds 5.00 to 8.00 lower. Heifers weighing less than 600 pounds trended steady, over 600 pounds steady to 5.00 lower. Demand was moderate to good on a moderate supply. Feeder cattle going on feed are under pressure as feeder cattle futures closed limit down and live cattle futures were sharply lower Monday. Feeder steers, medium and large 1 averaging 624 pounds brought 257.35 per hundredweight. 606 pound heifers averaged 236.78.

Lean hogs settled 42 to 160 points in the red. It doesn’t matter what else is going on in the hog market, but Tuesday traders had a hard time focusing on anything else but the limit down losses in the cattle complex. The fact that pork prices turned lower in the morning report added even more uncertainty to the already lightly traded market. February settle 1.60 lower at 81.67 and April was down 1.40 at 83.92.

The direct hog markets were not well established, with slow market activity and light demand. Barrows and gilts in the Iowa/Minnesota direct trade closed .12 higher at 80.90 weighted average on a carcass basis, the West was up .37 at 80.67, and there was no price comparison in the East at 78.96. Missouri direct base carcass meat price was steady from 75.00 to 78.00. Midwest hogs were steady to a dollar lower on a live basis from 53.00 to 60.00.

The negotiated cash hog trade could struggle over the last half of the month since packers often satisfy shortened holiday kill schedules almost exclusively with contracts.

The pork carcass cutout value closed sharply lower at 88.98, down 4.48 FOB plant. Picnic primals were down over 18.00 and bellies lost over 10.00.

USDA estimated the Tuesday hog kill at 430,000 head, 1,000 more than last week, but down 5,000 from last year at this time.