Market News

A few cattle sell in Nebraska

A light cattle trade is being reported in Nebraska on Tuesday afternoon, with some dressed sales marked at 186.00 to 187.00, steady to $1.00 lower than last week. Some cattle have been priced at 190.00 in the North, but it is tough to identify general asking prices, especially after futures closed sharply lower. Private sources reported a few bids in Kansas at 115.00 on a live basis. The cattle slaughter was estimated at 113,000 head, 1,000 less than last week, but 2,000 more than last year.

Boxed beef cutout values were lower on choice and higher on select on light to moderate demand and offerings. Choice beef was down .29 at 202.28, and select was 1.25 higher at 192.36.

Feeder cattle receipts at the Sioux Falls Regional Livestock at Worthing, SD totaled 2418 head on Monday. Compared to last week, there were few comparable sales as there was a light offering of feeder cattle last week. The best test was for steers weighing 1,000 to 1,100 pound at 1.00 to 4.00 higher. The demand was good for load lots of backgrounded steers, with a more moderate demand for smaller packages of steers and heifers. Feeder steers medium and large 1 averaging 977 pounds traded at an average of 136.95 per hundredweight. 822 pound heifers brought 132.84.

Feeder cattle contracts settled 77 to 180 points in the red with the deferred contracts losing ground to their nearby counterparts. It is a little surprising that this market has not been able to garner greater support from breaking corn prices.

Chicago Mercantile exchange live cattle contracts settled 110 to 205 points lower. Futures opened higher, but selling energy took over with August contracts catching most of the heat. Despite the large cash premium, the board continues to experience difficulty stabilizing. Intense summer heat and ideas of more dog days ahead do not help according to John Harrington at DTN.

Lean hogs closed unchanged to 107 points lower pressured by follow through selling, struggling cash markets, and general fears of greater pork tonnage down the road.

Barrows and gilts in the Iowa/Minnesota direct trade closed .70 lower at 72.35 weighted average on a carcass basis, the West was down .65 at 72.22, and nationally the market was .35 lower at 71.71. Missouri direct base carcass meat price was steady to 1.00 lower from 66.00 to 67.00. Midwest hogs were steady to 2.00 lower on a live basis from 43.00 to 46.00.

The pork carcass cutout value was unchanged at 81.14 FOB plant. Bellies were over $2.00 higher.

Pork belly demand remains very strong given the current retail and food service demand environment, according to DTN. Fresh supplies should be relatively tight with expectations of active retail promotions along with strong food service demand.

The Tuesday hog slaughter was estimated at 430,000 head, 3,000 more than last week, and 9,000 greater than last year.