Market News

Beef and pork cutout values show nice gains

Chicago Mercantile Exchange live cattle contracts settled 25 to 90 points lower partly on the weakness in the lean hogs which limited the overall positive momentum in the market. The positive movement in beef prices is still unable to draw additional buyer interest into the market at this point. August live cattle settled 77 points lower at 86.52 and October was down 75 at 91.12. Boxed beef cutout values were higher on moderate demand and offerings. Choice boxed beef was up 1.94 at 140.57, and select was up 1.58 at 134.41.

Feeder cattle ended 10 to 125 points lower pressured by the losses in the live pit as well as spillover pressure from the lean hog pit.  The two lead months both closed at 103.25, August was down 122 points and September was 125 lower.

Feeder cattle receipts at the Joplin Regional Stockyards on Monday totaled 5630 head. Steer and heifer calves weighing less than 600 lbs trended 3.00 to 5.00 higher. Steers and heifers over 600 lbs were steady to 2.00 higher. Demand was moderate to good on a moderate supply. Buyers have developed a renewed interest in calves as the weather has been mild for July and pastures are in good condition, hay barns are full, corn prices are lower and feeder cattle futures had been showing improvement. Feeder steers medium and large 1 averaging 632 lbs traded at 106.91, 580 lb heifers brought 102.03 per hundredweight.

Tuesday’s cattle slaughter was estimated at 126,000 head, the same as last week and a 1,000 less than last year. The cash cattle trade was typical for a Tuesday with only a few bids at 82.00 reported in Texas and Kansas. Asking prices are around 86.00 to 87.00 in the South and 136 + in the North. Slaughter cattle receipts at Dunlap, Iowa totaled 519 head. Choice steers were mostly 2.00 higher; heifers were 2.00 to 2.75 higher. Slaughter steers choice 204 brought 82.00 to 86.25, heifers from 82.00 to 85.00.

Barrows and gilts at the terminals trended mostly steady with a few 1-2 higher from 35.50 to 42.00 and a few at 44.00. Missouri direct base carcass meat price was steady from 52.00 to 55.00. Hog slaughter was estimated at 416,000 head, 15,000 more than last week, and 5,000 above last year. Iowa/Minnesota hogs closed 1.12 higher at 58.30, the West was up 1.42 at 58.44, and the East closed at 57.76 up .69.  Market watchers expect to see increased chain speed through the remainder of the week as packer margins have improved and country runs remain quite light. Wednesday’s cash market is expected to be steady to firm.

Lean hogs settled 87 to 232 points lower as traders continue to discount the overall support in the market over the last week according to DTN. The front months were down the most. The overall volume activity was moderate with a lack of buying activity. August settled 215 points lower at 62.50, and October was down 232 at 58.15. Pork trading was slow to moderate with light to moderate retail demand and mostly moderate offerings. The lean carcass cutout was 1.24 higher at 66.70.

Pork bellies finished 230 to 300 points lower on the losses in the lean pit. Overall trade activity was light with traders focusing on the overall longer term direction of the hog markets as well as traders taking advantage of new profit taking opportunities. August was down 230 points at 63.50, and February was 300 lower at 84.80.