Market News

Boxed beef cutout values close sharply higher

Chicago Mercantile exchange live cattle contract settled 45 points higher to 10 lower as traders locked in profits and squared positions from the sharp rally of late last week. Higher boxed beef cutout values at noon leant support to the August contract. August settled 42 points higher at 86.80, and October was down 7 at 91.87. Boxed beef cutout values were sharply higher on moderate demand and offerings. Choice beef was up 2.09 at 138.63, and select was 2.02 higher at 132.73.

Feeder cattle finished Monday’s session mostly lower on profit taking and weakness in the live pit. August was down 12 points at 104.47, and September was 22 lower at 104.50.

 Estimated receipts at the Oklahoma National Stockyards on Monday totaled 10,600 head. Compared to last week feeder cattle and calves are steady. Demand was good for all classes. Feeder steer calves medium and large 1 weighing 500 to 550 pounds 104.00 to 114.00. 600 to 700 lb yearling steers traded from 105.75 to 108.00. 525 to 600 lb heifers at 98.00 to 104.00, 6 to 7 weight heifers from 98.00 to 103.00 per hundredweight.

Monday’s cattle slaughter was estimated at 124,000 head, 1,000 less than last week and last year. Formula cattle sales for last week were mixed, somewhat larger in Texas, smaller in Nebraska, and significantly lower in Kansas. The weekly trade volume totals were generally smaller, especially in the South. The new show lists appear to be mixed, with larger numbers in Texas and Colorado, but smaller in Nebraska and Kansas. The aggregate offerings are larger due to the big jump in the Texas numbers. Preliminary asking prices are around 86 to 87 in the South and 136 + in the North.

Hog slaughter was estimated at 370,000 head, 10,000 more than last week, but 25,000 less than last year. Barrows and gilts at the terminals were fully steady on a light Monday test at 34.50 to 40.00. The Missouri direct base carcass meat price was steady to 1.00 higher 52.00 to 55.00. Iowa/Minnesota hogs closed .69 higher at 57.33 on a carcass basis, the West was .33 lower at 57.09, and the East was down .23 at 57.12. Packers reportedly are short bought and margins are much improved. The carcass value jumped $7.45 from Friday to Friday. Tuesday’s cash market is predicted to be steady to firm.

Lean hogs settled mostly lower as traders remained relatively cautious despite the uptick in carcass values.  August settled 2 points lower at 64.65, and October was down 7 at 60.47. Pork trading was slow, with light to moderate demand and mostly light offerings. Pork carcass cutout value was .17 lower at 65.46.

Pork bellies closed 90 to 200 points higher as traders have returned to the market, even more aggressive than last week. The apparent support in cutout values as well as the upward bump in the stock market left additional buyers looking to get into the belly market on Monday according to DTN. The two front months were both up 200 points, August at 65.80, and February at 87.80.