Market News

Cattle sell in Nebraska and Kansas at higher prices than last week: July 2, 2009

Chicago Mercantile Exchange live cattle contracts ended mixed. Lower corn prices helped to support the deferred months. Futures had been sharply lower for much of the session but came back some near mid-session as overall selling pressure subsided. Lower outside markets and inactive cash trade also weighed on futures prices. August settled 87 points lower at 84.87, and October was down 55 at 90.22. Boxed beef cutout values were steady to weak, with light to moderate demand and offerings. Choice boxed beef was .30 lower at 132.89, and select was down .04 at 132.44.

Feeder cattle finished the session mixed after trading lower much of the session. There was some profit taking as traders looked to get out of the market ahead of the long weekend. Lower corn values lent support to the deferred issues. August ended 32 points lower at 103.45, and September was down 5 at 102.12.

Feeder cattle receipts at Missouri Auctions this week totaled 22,510 head. Feeder steers and heifers sold 1.00 to 4.00 higher. Holstein steers under 500 lbs were 2.00 to 4.00 higher, over 500 lbs steady to 1.00 lower. Feeder steers medium and large 1; 654 head averaging 827 lbs traded at 101.86 per hundredweight, 847 heifers averaging 764 lbs brought 95.71.

Thursday’s cattle slaughter was estimated at 126,000 head, 2,000 less than last week, and 1,000 less than last year. USDA mandatory reported a moderate cattle trade developed in Kansas at 83.00, 1.00 higher than last week. Trading and demand was light in Nebraska Thursday afternoon. Compared to last week live sales trended 1.00 to 2.00 higher at 82.00 to 82.50. There were a few dressed sales 2.00 higher at 131.00. Many sellers continued to pass current bids.

Hog slaughter was estimated at 413,000 head, 2,000 more than last week, but 5,000 less than a year ago. Terminal barrows and gilts were lightly tested at steady prices from 33.00 to 37.00. The Missouri direct base carcass meat price was steady from 48.00 to 53.00. Barrows and gilts in the Iowa/Minnesota direct trade closed .70 higher at 58.60, the West was up .67 at 58.56, and the East was .97 higher at 55.11. . Iowa barrows and gilts last week averaged 265.1 pounds, 3.6 pounds below the previous week, but 3.4 pounds more than last year. While weights remain above last year live tonnage is falling sharply lower, true to the seasonal trend according to DTN’s John Harrington.

Lean hogs settled 25 to 135 points higher on reports of sharply higher cash prices in the IA/MN and Western direct trade areas. Many traders spent the session squaring positions ahead of the long holiday break. July settled 72 points higher at 59.97, and August was up .45 at 61.15. Pork trading was slow to moderate with light to moderate demand and offerings. The pork carcass cutout was up 1.23 at 55.00

Pork bellies closed lower on outside pressure from the stock market. July was down 55 points at 53.85, and August was 185 lower at 54.17.