Market News

Beef and pork cutout values sharply lower

Chicago Mercantile Exchange live cattle contracts settled 25 points higher to 20 lower after posting sharp losses after the opening bell. Short covering and spreading were the main features of the session. August settled 5 points lower at 84.02, and October was up 7 at 89.80. Boxed beef cutout values were lower on moderate to good demand and heavy offerings. Choice beef was down 2.04 at 140.60, and select was .74 lower at 134.96.

Feeder cattle contracts settled 20 to 57 points higher on the firmer live cattle, buy stops and lower corn values on the Chicago Board of Trade. August was up 37 at 101.32, and September settled at 101.15 up 57 points.

Feeder cattle receipts at the Sioux Falls Regional Livestock Market at Worthing, SD totaled 3184 head. Due to light receipts two weeks ago a trend was not possible, but a steady to weaker undertone was noted. Demand and buyer attendance was good. Feeder steers medium and large 1, 334 head averaging 1023 lbs traded at 92.47 per hundredweight, 232 heifers weighing 823 brought 94.51 at Worthing.

Cattle slaughter was estimated at 118,000 head, 8,000 less than last week, and 7,000 fewer than last year. Packer inquiry into the feed lot cattle is light, with a few more bids on the table at 80 to 81 in Kansas and Texas, but not close to asking prices of 84 to 85. There were some bids in Nebraska according to private sources at 129 to 130; asking prices in the North are 134 to 135.

Barrows and gilts at the terminals trended steady to 2.00 lower from 31.00 to 36.00 on a live basis. Missouri direct base carcass meat price closed steady to weak from 45.00 to 49.00. Iowa/Minnesota hogs closed .82 lower at 49.95 on a carcass basis, the West was down .70 at 50.25, and the East closed at 49.19 down .89. Wednesday’s hog slaughter was estimated at 423,000 head, 4,000 more than last week and 12,000 greater than last year. Iowa hogs last week were 1.2 pound heavier than the previous week and 9.3 pounds more than last year. Thursday’s cash bids are expected to be weak.

Lean hogs settled 62 to 222 points lower only the October contract higher. DTN’s Rick Kment says, the overwhelming surge of bearish momentum continues to keep developing in the market that seems to be already on the ropes. August settled 62 points lower at 53.35, and October was up 7 at 50.20. Pork trading was moderate with light demand and mostly moderate offerings. Pork carcass cutout was down 1.76 at 56.87.

Pork bellies ended the session firm to 100 points higher on Tuesday’s bullishly construed storage report. Short covering and buy stops.  February closed up 100 points at 81.00, March was also up 100 at 80.50.