Market News

A light to moderate cattle trade in all regions on Thursday

Chicago Mercantile Exchange live cattle contracts settled unchanged to 57 points higher. Moderate buying support was seen as traders focused on the combination between higher cutout values as well as the upward movement in the outside markets.  Deferred months received additional support from sharply higher corn futures values. August settled unchanged at 85.02, and October was up 30 points at 90.10. Boxed beef cutout values were higher on light to moderate demand and offerings. Choice boxed beef was up .91 at 143.05, and select was 1.21 higher at 136.74.

Feeder cattle ended the session 10 to 70 points lower on the rally in the corn pit. August finished 75 lower at 102.37, and September was down 65 at 102.10.

Feeder cattle receipts at the Springfield Livestock Marketing Center in Missouri totaled 2202 head. Compared to last week feeders trended steady to 2.00 higher, with steers weighing 500 to 700 pounds 3.00 to 5.00 higher. Feeder steers medium and large 1 and 1-2 weighing 500 to 600 pounds 105.00 to 115.00, 7-8 weights 97.00 to 102.00. 500 to 600 pound heifers at Springfield brought 92.00 to 104.00 and 7 to 8 weights from 84.50 to 94.50 per hundredweight.

Thursday cattle slaughter was estimated at 119,000 head, 4,000 less than last week, and 7,000 fewer than last year. Cattle trading in Nebraska was moderate with light to moderate demand. Compared to Wednesday dressed sales sold steady to 1.00 higher from 132.00 to 133.00, and live sales were steady to weak at 83.50. Dressed sales in Iowa/Minnesota sold steady at 133.00. Colorado sales were steady at 131.00. Trading was slow in the Southern Plains with light demand, compared to Wednesday; a few live sales in the Texas Panhandle were steady at 83.00. There were a few dressed sales in Kansas at 132.00.

Hog slaughter was estimated at 420,000 head, 15,000 more than last week, and 2,000 greater than last year. Barrows and gilts at the terminals trended fully steady from 34 to 44 on a live basis. The Missouri direct base carcass meat price was steady from 52.00 to 55.00. Iowa/Minnesota hogs closed .34 lower at 58.21 on a carcass basis, the West was .26 lower at 58.46, and the East was .78 higher at 57.43. Iowa barrows and gilts last week averaged 266.2 pounds 1.3 more than the previous week and 6.6 pounds more than last year. Slow chain speed and mild summer conditions are making a bearish difference in terms of tonnage according to John Harrington at DTN. Friday’s cash bid are expected to be about steady.

Lean hogs settled 47 to 210 points lower. As the week progresses it is harder and harder to find any positive movement in the lean hog market. Since, late last week the lean market has shed more than $4.00 per hundredweight despite higher cutout values for most of the last week and a half.  August was 115 points lower at 60.95, and October was down 92 at 56.40. Pork trading was slow to moderate with moistly light demand and mostly moderate offerings. The lean carcass cutout closed 1.58 lower at 64.85.

Pork bellies settled 32 to 125 points lower on the weakness in the lean pit and overall sluggish demand. August finished 125 lower at 63.30, and February was 32 lower at 83.47.