Market News

Cash cattle trade in all areas at lower prices than last week: July 10, 2009

Chicago Mercantile Exchange live cattle contracts settled unchanged to 60 points lower on positioning ahead of the weekend. Summer 2010 contracts continued to show the greatest weakness as traders are now predicting that overall burdensome supplies could reach all the way into next year, according to DTN. August was unchanged at 83.47; October was down 17 points at 88.65. Boxed beef cutout values were generally steady on light to moderate demand and offerings. Choice boxed beef was down .16 at 137.36, and select was up .06 at 132.35.

Feeder cattle ended the week 62 higher to 10 points lower. Spreading and losses in the corn contracts were the main features of Friday’s trade. August was down 2 points at 102.92, and September was down 7 at 103.22.

Feeder cattle receipts at Missouri auctions this week totaled 20,440 head. Compared to last week feeders were steady to 3.00 higher. Steers medium and large 1 and 1-2 weighing 500 to 600 lbs traded at 92.50 to 121.25, 7 to 8 weights 90.00 to 108.50. Heifers weighing 500 to 600 lbs brought 89.00 to 109.35 per hundredweight, and 7 to 8 weight heifers brought 76.00 to 99.60 per hundredweight.

The weekly cattle slaughter was estimated at 628,000 head, the same as last week, but 71,000 less than last year. Slaughter cattle trading was moderate to fairly active on Thursday and Friday. Live prices trended 1.00 to 1.50 lower in the South at 82.00. In the North live prices were .50 to 1.00 lower in a range of 81.50 to 82.00, and 2.00 lower dressed at 129.00 with a few up to 130.00. Some feed yards continued to pass on all bids on Friday afternoon. Slaughter cows and bulls were mostly steady to 4.00 higher this week.

The weekly hog kill was estimated at 1,957,000 head, 65,000 more than last week, but 200,000 less than last year. This is the first time since mid August of 2007 for the kill to be under two-million head in a non-holiday week. Barrows and gilts at the terminals were very lightly tested at steady prices, 35.00 to 38.00 on a live basis. Missouri direct base carcass meat price closed steady, 53.00 to 54.00. Iowa/Minnesota hogs closed .78 lower at 57.07 on a carcass basis, the West was down .49 at 57.27, and the East was .01 lower at 55.14. USDA estimated Saturday’s hog kill at zero. Packers reportedly are well covered in terms of slaughter numbers going into the first of the week. The Monday cash bids are predicted to be steady to weak.

Lean hogs settled 45 higher to 62 points lower, but only a couple of months were in the black. Light to moderate buying helped to support the spot month. There was concern in the market that the recent uptick in carcass value may be overstated at the end of the week. July closed 45 points higher at 60.15, and August was down 10 at 63.60. Pork trading was slow, with light demand and offerings. The pork carcass cutout value was up .25 at 58.18.

Pork bellies settled 140 to 200 points higher. July settled at 61.85, and August at 62.00, both were up 2.00.