Market News

Pork and beef values end higher

Cattle country remained untested on Thursday afternoon with just a few scattered bids reported in Kansas from 167.00 to 168.00 live, and Nebraska 263.00 to 265.00 dressed basis. Asking prices remain firm around 174.00 in the South and 270.00 plus in the North. Significant trade volume will be delayed until sometime on Friday, probably not until after the release of the monthly cattle on feed report. The kill was estimated at 113,000 cattle, the same as last week, but down 9,000 from last year.

Boxed beef cutout values were firm to higher on moderate demand and light offerings. Choice beef was up .60 at 255.39, and select was .94 higher at 242.99.

Chicago Mercantile Exchange live cattle contracts settled 57 points lower to 100 higher with nearby December and February contracts holding onto light pressure due to the weakness through the rest of the livestock market. Gains developed in the deferred futures trade, and this helped to firm longer term support in the complex, although trade volume remained light. December settled .57 lower at 170.25, and February was down .47 at 171.82.

Feeder cattle ended the session 12 to 197 points lower as contracts came under significant pressure with the strongest losses seen in the early 2015 contracts. Traders appeared to start to adjust to expectations of the cattle on feed report due for release Friday afternoon. Although estimates point to a light decrease in cattle placements in October, traders may have taken additional protection. November settled .12 lower at 240.42, and January was down 1.52 at 235.57.

Feeder cattle receipts at the Huss Platte Valley Auction in Nebraska totaled 4583 head on Wednesday. Compared to last week, steers under 650 pounds sold 7.00 to 10.00 higher, over 650 pounds steady to 3.00 higher. Heifers under 600 pounds sold 4.00 to 8.00 higher with weights over 600 pounds fully steady. Demand was good throughout the day with several buyers in the seats. Feeder steers medium and large 1, calves weighing 716 pounds averaged 242.83 per hundredweight. 719 pound heifers brought 231.97.

Lean hogs settled 100 points lower to 65 higher. The nearby contracts closed under pressure, but light buyer support entered the market and supported the deferred contracts. The nearby issues ended well off session lows and that kept buyers focused on the potential that current demand fears have been adequately met by the pullback in price levels. December settled 1.00 lower at 90.77, and February was down .75 at 90.00.

There was slow hog market activity with light demand. Barrows and gilts in the Iowa/Minnesota direct trade closed .66 lower at 85.79 weighted average on a carcass basis, the West was down .68 at 85.75, and the East was .17 higher at 84.04. Missouri direct base carcass meat price closed steady from 77.00 to 81.00. Midwest hogs were fully steady from 58.00 to 66.00 on a live basis.

The pork carcass cutout value was .98 higher at 93.62 FOB plant. Picnics, loins, and bellies ended higher.

For the week ending Nov. 15, Iowa barrows and gilts averaged 284.7 pounds, a full pound lighter than the previous week and only 3.5 pounds greater than 2013 the smallest year over year premium since late September 2013. 

Thursday’s hog kill was estimated at 430,000 head, 2,000 less than last week, and down 6,000 from last year.