Market News

Cattle and hog slaughter down from last year

Chicago Mercantile Exchange live cattle contracts settled 17 to 50 points lower as traders waited for further development in the cash trade in the South and release of the cattle inventory and on feed reports due out after the close of trade. Deferred issues received additional pressure from lower corn values. August settled 50 points lower at 84.52, and October was down 35 at 89.75. Boxed beef cutout values were generally steady on light to moderate demand and offerings. Choice boxed beef was down .20 at 142.85, and select was .03 lower at 136.71.

Feeder cattle ended the session 17 to 40 higher on the losses in the corn pit. The lackluster movement in the cattle market leant some additional support to the feeders as traders may look to secure placements over the next several days or weeks. August settled 17 points higher at 102.55, and September was up 25 at 102.35.

Feeder cattle receipts at Missouri auctions this week totaled 25,254 head. Feeder steers less than 700 pounds trended steady to 3.00 higher, over 700 lbs steady to 2.00 lower. Heifers under 600 lbs were steady to 3.00 higher; over 600 lbs steady to 2.00 lower. Demand was moderate to good on calves, moderate to light on the yearlings. Feeder steers medium and large 1, 795 head averaging 629 pounds traded at 109.73, 452 heifers weighing 624 lbs brought 100.18 per hundredweight.

The weekly cattle slaughter was estimated at 615,000 head, 12,000 less than last week and 50,000 under last year. Light cattle trade was reported in parts of Texas with prices steady with midweek at 83.00, but 1.00 lower than last week. Northern business was essentially complete due to decent movement on Thursday. Dressed sales in the North were steady to a dollar higher this week from 132.00 to 133.00, and live sales trended steady to .50 lower from 83.00 to 84.00.

The weekly hog slaughter was estimated at 2,030,000 head 76,000 more than last week, but 99,000 less than last year. Terminal barrows and gilts trended steady to a 1.00 higher on a live basis from 35.00 to 45.00 in a light Friday test. Missouri direct base carcass meat price closed steady from 52.00 to 55.00. Iowa/Minnesota hogs closed .90 lower at 57.03 on a carcass basis, the West was down .57 at 57.73, and the East was up .26 at 57.24. Packers responded to positive margins and increased chain speed and production. No packers are scheduled to be dark on Monday for the first time in weeks. Cash prices are projected to be no better than steady to start the week, as most packers are reported to have adequate numbers of hogs.

Lean hogs settled 80 to 190 points lower with the bearish tone of the market continuing into the weekend break. DTN says at this point there is nothing keeping markets from testing lows posted in mid June and possibly breaking through that level. August was down 190 points at 59.05, and October was 182 lower at 54.57. The lean carcass cutout was up .15 at 65.50. Pork trading was slow with mostly light demand and light to moderate movement.

Pork bellies closed unchanged to 200 points lower on spillover pressure from the lean pit. August settled at 61.30 down 200 points, but February was unchanged at 82.47.