Market News

Cattle bids and asking prices far apart

The cash cattle trade was very quiet on Wednesday afternoon with just a few token bids evident in Kansas at 122.00 to 123.00, and Nebraska from 192.00 to 198.00 dressed. Some showlists have been priced around 128.00 basis Kansas, but generally speaking feedlot managers are sitting on their hands. Another round of sharply lower futures may be working to discourage price expectations. The kill totaled 112,000 head, even with last week, but 18,000 above last year at this time.

Boxed beef cutout values were lower on choice and steady on select on light to moderate demand and offerings. Choice beef was down 1.92 at 226.42, and select was down .19 at 204.26.

Live cattle contracts on the Chicago Mercantile Exchange settled 67 to 177 points lower. Despite Tuesday’s late bounce, live cattle were back on the defensive. The market appeared to be pressured by long liquidation and a general shortage of buying interest. Spot June fell below the trend lines drawn from the lows of early and late May.

Feeder cattle ended the session 89 to 190 points in the red. Despite the premium status of the cash index, feeder bears were locked on the deteriorating status of deferred live contracts.

Feeder cattle receipts at the Ozarks Regional Stockyards at West Plains, Missouri totaled 2672 head on Tuesday. Compared to last week, feeder steers and heifers traded 5.00 to 10.00 lower. The demand was moderate on a light to moderate supply. The supply was affected by the heat and hay harvest. Feeder steers medium and large 1 averaging 614 pounds brought 149.95 per hundredweight. 614 pound heifers averaged 129.68.

The Pipestone, Minnesota hay auction had receipts of 37 loads on Tuesday. Large rounds of utility alfalfa brought 49.00 to 65.00 per ton. Good large rounds of grass traded at 80.00 per ton. Fair large rounds of alfalfa/grass ranged from 65.00 to 75.00.

Lean hogs settled 125 higher to 125 points lower with July down the most and December up the most. August and October contracts set new contract highs. The July was lower pressured by the discount of the cash lean index.

Barrows and gilts in the Iowa/Minnesota direct trade closed .54 higher at 80.24 weighted average on a carcass basis, the live market was 2.36 higher at 61.67. Western hogs were up .65 at 80.22, and nationally the market was .42 higher at 79.54. Missouri direct base carcass meat price closed steady to 1.00 higher from 68.00 to 70.00. Midwest hogs on a live basis were steady to 2.00 higher from 48.00 to 50.00.

The pork carcass cutout value was .43 lower at 87.40 FOB plant. Only the picnic and belly primal were higher.

If seasonal beef demand has essentially topped and is set to soften over the next 30 to 60 days, pork demand may have a tough time building a significant head of steam.

The Wednesday hog slaughter was estimated by USDA at 427,000 head down 3,000 from last week, but up 1,000 from last year.