Market News

Cattle futures contracts closed lower and hogs were mixed

Chicago Mercantile Exchange live cattle contracts settled 87 to 140 points lower on profit taking and demand worries. The strength of the U.S. dollar also added to the losses. August settled at 83.95 down 97 points, and October was 132 lower at 89.25. Boxed beef cutout values were steady to weak on light demand and light to moderate offerings. Choice beef was down .28 at 142.69, and select was .13 lower at 137.00.

Feeder cattle ended the session 65 to 100 points lower on the losses in the live pit, sell stops and future’s premium to the boards feeder cattle index. August feeders closed 82 lower at 102.02, and September was down 92 points at 102.05.

Feeder cattle receipts at the Philip Livestock auction, Philip, SD totaled 3394 head. No recent reported auction for a price comparison. Tuesday’s offering consisted mainly of load lots of yearling cattle, along with several small packages coming off grass. The greatest demand was for the load lots, more moderate on the small packages. Feeder steers medium and large 1, 320 head with an average weight of 871 pounds traded at 103.44, 187 heifers averaging 817 brought 96.73 per hundredweight.

Wednesday’s cattle slaughter was estimated at 126,000 head, 1,000 less than last week, but the same as a year ago. Packer inquiry into the cattle remained light. The gap between asking prices of 85 to 86 and bids of 80 to 82 in the South and, 135 + asked and 128 to 130 bid in the North, suggests that we won’t see significant business until Thursday or later. A few cattle sold in Iowa at 132.00, but not enough for a market test.

Hog slaughter was estimated at 419,000 head, 13,000 more than a week ago, and 7,000 greater than last year. Barrows and gilts at the terminals were mostly 1.00 to 200 lower from 34 to 40. The Missouri direct base carcass meat price was also 2.00 lower from 49.00 to 53.00. Iowa/Minnesota hogs closed 1.30 lower at 54.57 on a carcass basis, the West was down 1.23 at 54.83, and the East closed down .94 at 53.98. The pork carcass value continues to erode this week as midsummer pork demand proves increasingly inadequate in the face of rising slaughter and production. Cash bids on Thursday are predicted to be lower again.

Lean hogs settled 100 points higher to 35 lower after bearish trade activity early in the session. Even with sharply lower cash prices at midsession, the selling pressure subsided as the oversold market seemed to come to a stopping point. Nearby contracts rallied some and ended a dollar or more higher than session lows. August settled 10 points lower at 56.75, and October was up 40 at 53.10. Pork trading was, moderate, with very light demand and moderate to heavy offerings. The lean carcass cutout closed 2.50 lower at 59.54.

Pork bellies closed mixed as additional pressure continued to develop in the market. August ended 17 points higher at 61.55, and February was down 77 at 82.52.