Market News

Cattle stage midday rally to close firmer

Live cattle contracts settled firmer on the Chicago Mercantile Exchange as late week buying activity entered the market following the earlier downward tone. Improvement in the U.S. stock market leant additional support to the deferred issues. August was up 65 points at 93.85, and October was unchanged at 89.12. Boxed beef cutout values ended the week steady on fairly good demand and heavy offerings. Choice beef was unchanged at 140.70; select was down .01 at 134.06.

Feeder cattle ended the session 25 to 65 points higher on strength from the live cattle pit, and spreading into October out of August. August finished 25 points higher at 103.35, and September was unchanged at 100.97.

Feeder cattle receipts at Missouri auctions this week totaled 26,748 head. Compared to last week steers under 600 pounds trended steady to 2.00 higher, over 600 lbs steady to 2.00 lower, and heifers were steady. Feeder steers medium and large 1 and 1-2 weighing 500 to 600 lbs 95.00 to 124.50, 7 to 8 weights from 85.50 to 111.25 per hundredweight. 500 to 600 lb heifers brought 83.50 to 111.50 and 7 to 8 weights from 79.50 to 100.75 at Missouri auctions.

This week’s cattle slaughter was estimated at 627,000 head, 12,000 less than last week, and 40,000 fewer than last year. Slaughter cattle trading got underway on Thursday afternoon in most regions. High plains direct market slaughter steers and heifers were 1.00 lower at 81.00. In the north cattle on a live basis were 1.00 lower at 81.00 to 82.00 and 1.00 to 2.00 lower dressed at 129.00 to 130.00. Movement was moderate in most areas.

Hog slaughter for the week was estimated at 2,096,000 head, 6,000 less than last week, and 32,000 fewer than last year. Terminal prices were 1.00 to 2.00 lower in a very light test from 29.50 to 33.00 on a live basis. Missouri direct base carcass meat price was steady at 45 to 48. Iowa/Minnesota hogs closed 1.35 lower at 48.15, the west was down 1.41 at 48.19, and the east was .88 lower at 47.02 on a carcass basis. As fast as prices dropped this week, carcass value dropped even faster. DTN says, packers will remain defensive even if it means they start the week with a few less market hogs. Continued weakness is expected in the cash market on Monday.

Lean hogs settled 57 points higher to 267 lower with all 2009 contracts in the red and all 2010s in the black. Lean hogs traded lower most of the session but made significant gains especially in the deferred months near the close. August was down 227 points at 48.80 and October was off 267 at 44.90. Pork trading was slow, with mostly light demand and light to mostly moderate offerings. The pork carcass cutout value was down .07 at 54.57.

Pork bellies settled 72 to 300 points lower. The spread between the August and February contracts is nearly $30.00 per hundredweight. August was down the 300 point limit at 51.75, and February was down 72 at 79.57.