Market News

Cattle futures closed sharply lower again

Cattle producers were shocked by limit losses in futures and souring market psychology. DTN analysts say they think that business is done for the week with both sides hoping the dust will clear somewhat after the long holiday weekend. A few cattle did sell in Kansas and Texas at 110.00, and Nebraska at 173.00. The kill totaled 113,000 head, even with both last week, and last year

Boxed beef cutout values ended the day lower on light to moderate demand and offerings. Choice beef was down .75 at 195.74, select 188.49, 1.22 lower.

Chicago Mercantile Exchange live cattle contracts settled 1.85 to 3.00 lower, with the October limit lower. The focus in the market continues to be driven by concern of additional long term losses as fundamentals remain extremely weak and seasonal pressure is expected to put even more pressure on the complex.

Feeder cattle contracts ended the session 2.35 to 3.82 lower with pressure coming from aggressive long liquidation and technical selling.

Feeder cattle receipts at the Hub City Livestock Auction at Aberdeen, South Dakota totaled 1667 head on Wednesday. The best test was on 900 to 999 pound steers steady to 1.00 lower, 1000 to 1049 pounds 2.00 to 4.00 lower. Heifers were too lightly tested for a good comparison. There was good to very good demand for a couple of strings coming off grass. 431 head of feeder steers averaging 920 pounds brought 139.26 per hundredweight. 73 heifers weighing 965 pounds brought 123.17.

Schuyler Livestock Auction at Rushville, Illinois had receipts of 469 cattle on Wednesday. Compared to two weeks ago slaughter steers and heifers sold 8.50 to 9.00 lower. Slaughter cows were 2.00 to 3.00 lower. Slaughter bulls sold 5.00 lower. Slaughter steers choice 2-3 ranged from 105.50 to 111.00 per hundredweight. Heifers brought 101.50 to 109.75.

Lean hogs closed unchanged to .55 higher and traded lower much of the session due to spillover pressure from the struggling cattle complex. However gains were able to hold into the close, even though buyer support started to wane due to the upcoming holiday weekend.

There was slow hog market activity with light demand on Thursday afternoon. Barrows and gilts in the Iowa/Minnesota direct trade closed .33 higher at 60.16 weighted average on a carcass basis, the West was up .04 at 58.81, and nationally the market was down .14 at 59.06. Missouri direct base carcass meat price was steady to 2.00 lower from 52.00 to 56.00. Midwest hogs on a live basis were steady to instances of 4.00 lower from 35.00 to 46.00.

The pork carcass cutout value was up .39 at 79.31` FOB plant. All cuts except hams were moderately higher.

For the week ending August 27, Iowa barrows and gilts averaged 276 pounds, 1.3 pounds heavier than the previous week, and one pound lighter than last year.

The Thursday hog kill was estimated by USDA at 436,000 head, 15,000 more than last week, and 5,000 greater than last year.