Market News

Live, feeder cattle futures drop the daily limit

Chicago Mercantile Exchange live cattle futures were limit down on long liquidation and the losses in the broader market. The uncertainties about the impact of the plant fire in southwestern Kansas added to the session’s negativity. Live and feeder cattle futures will have expanded trading limits Tuesday. August was down $3.00 at $105.05 and October was $3.00 lower at $103.75.

Feeder cattle were limit down on the same factors as the live pit. Contracts were locked limit down all day, ignoring the $.25 lower move in corn. August was $4.50 lower at $134.40 and September was down $4.50 at $133.95.

Direct cash cattle business was at a standstill. This week’s showlist looks mixed when compared to last week, higher in Kansas, near steady in Texas, and lower in Colorado and Nebraska. Widespread trade is not expected until later in the week. Live trade in the south last week was late to develop, generally light at $110, down $1 from the previous week’s weighted averages. Dressed activity in the north ranged from $179 to $183. Formula totals were larger in Kansas, Nebraska, and Texas, while trade volume totals were mixed, up in Kansas and Texas, down in Nebraska. A fire at the Tyson plant near Holcomb, Kansas over the weekend didn’t seem to have much of an impact on production.

Boxed beef closed sharply higher on good demand for heavy offerings. Choice was up $2.25 at $218.62 and Select was $3.98 higher at $197.79. The estimated cattle slaughter of 115,000 head was down 4,000 on the week and 2,000 on the year.

At the Joplin Regional Stockyards in Missouri, compared to the previous week, steer calves were $5 to $10 lower, with yearling calves $4 to $7 lower, and heifers down $3 to $6. The USDA says demand was light to moderate for a light supply, with business limited by the weather. Medium and Large 1 feeder steers weighing 600 to 700 pounds were reported at $141 to $152 and 700 to 800 pound steers brought $131 to $139. Medium and Large 1 to 2 feeder heifers weighing 400 to 500 pounds sold at $124 to $139 and 600 to 700 pound heifers ranged from $115 to $134.

Lean hog futures were mostly lower on spread adjustments and long-term fundamental uncertainties. Also, while direct cash business opened sharply lower, pork started the week sharply higher, with a big gain in the belly primal at midday on Monday. August was up $.15 at $79.17 and October was $.10 higher at $67.07.

Cash hogs were sharply lower, with moderate closing negotiated numbers at the major direct markets. Buyers followed up on last week’s business, but with lighter negotiated receipts to start the week, which only improved slightly from midday levels. The industry remains focused on margins, good domestic demand, and export questions. The cutout value posted a strong gain last week, even as futures dropped, but might be starting to show signs of topping out for the time being.

Pork closed $.25 lower at $90.19. Loins, butts, ribs, and bellies were firm to higher, while picnics were weak and hams were lower. The estimated hog slaughter of 466,000 head was up 39,000 on the week, but down 1,000 on the year.

National direct barrows and gilts closed $2.02 lower at $62 to $72 with a weighted average of $68.85, while Iowa/Southern Minnesota was down $2.66 at $69.71 and the Western Corn Belt was $2.62 lower at $69.17. Illinois direct sows were firm at $33 to $48 on good demand for moderate offerings. Barrows and gilts were $1 lower at $43 to $50 with moderate demand and offerings. Boars ranged from $8 to $27.