Market News

Boxed beef firms

Boxed beef cutout values were steady to firm on moderate demand and light to moderate offerings. Choice beef was up 72 at 233.34, and select was .25 higher at 229.32.

Cattle trade was untested on Thursday afternoon with bids and asking prices separated by $4.00 to 5.00 on a live basis. Asking prices are generally 148.00 in the South, and 236.00 plus in the North. Significant trade volume will be delayed until sometime on Friday. The kill was estimated by USDA at 107,000 head, 2,000 below last week, and 7,000 smaller than last year.

Chicago Mercantile Exchange live cattle contracts settled mixed on Thursday. Early market support in the cattle complex in the early trade seemed to spark some additional market pressure as buy orders quickly ran low, allowing for markets to move to mixed price levels. The firming support in boxed beef values was viewed as moderately supportive, but unable to draw additional interest back into the market. August futures settled .30 higher at 145.22, but October was down .02 at 146.45.

Feeder cattle ended the session mostly lower except for some 2016 contracts. Markets moved lower as buyer support evident in the complex slowly but steadily eroded through the morning. There was a lack of underlying support and renewed buyer interest in the complex at the end of the week creating some concerns additional pressure may hold through the end of the month. August down .25 at 211.22, and September was .35 lower at 208.60.

Feeder cattle receipts at the Huss Platte Valley Auction in Nebraska totaled 2175 head on Wednesday. Compared to two weeks ago, steers over 800 pounds sold mostly steady, with comparable type heifers 5.00 lower. There was no recent test on spring calves so a trend was not given. Lower cattle futures did not dampen the buyer’s mood because they bid readily for all offerings. The majority of the cattle came off summer grass with a few cattle out of grow yards. Feeder steers medium and large 1 averaging 891 pounds traded at 211.25 per hundredweight. 816 pound heifers averaged 207.36.

Lean hogs were mostly lower on the combination of the cattle markets eroding from early session highs and the lack of support in the midday pork cutout report. It is uncertain just how much liquidation activity is under the surface and willing to quickly flood into the market before the end of the week. August settle .17 lower at 79.67 and October was down .37 at 65.70.

Barrows and gilts in the Iowa/Minnesota direct trade were not reported due to confidentiality. Western markets were .77 lower at 75.94, and the East was down 1.02 at 73.33.The Missouri direct base carcass meat price was steady from 70.00 to 72.00. Midwest hogs on a live basis closed fully steady from 46.00 to 58.00.

The pork carcass cutout value was up .26 at 86.23 FOB plant.

For the week ending July 25, Iowa barrows and gilts averaged 277.8 pounds, 0.5 pound heavier than the previous week, still 5.9 pounds lighter than 2014. Weight gain in the middle of extreme summer heat and relatively large slaughter totals is impressive.

Hog slaughter is estimated at 425,000 head, 7,000 more than last week, and 26,000 greater than last year.