Market News

Cattle trade in Nebraska at 80.50 on a live basis: June 25, 2009

Chicago Mercantile Exchange live cattle contracts settled narrowly mixed in a range of 30 higher to 12 points lower. Front months posted the gains while fourth quarter 2009 and 2010 showed light losses. The gains in the stock market leant support to the front months, but did not erase the weaker demand expectations according to DTN. Many traders waited for significant action in the feedlot trade. June was up .30 at 81.95, and August ended at 82.55 up .07. Boxed beef cutout values were weak on light to moderate demand and moderate offerings. Choice beef ended .25 lower at 139.69 and select was down .54 at 132.69.

Feeder cattle closed unchanged to 50 points higher following the lackluster trade activity in the live pit. There was not enough overall support in the market to push prices higher. Lower corn values lent some support to deferred feeder issues. August was unchanged at 98.95, and September was up .32 at 98.87.

Feeder cattle receipts at Bassett, Nebraska on Wednesday totaled 2245 head. Not enough comparable offerings to establish an accurate trend, but a steady to firm undertone was noted. Demand was very good for 8 to 9 weight yearlings and 600 pound receipts suitable for grass. But light for un-weaned fall calves. Feeder steers, medium and large 1 averaging 929 lbs traded at 97.27, 620 lb heifers brought 105.23 per hundredweight.

Thursday’s cattle slaughter was estimated at 128,000 head, 1,000 more than last week, but the same as last year. Cattle trading was light in Central and Western Nebraska with moderate demand. Compared to yesterday, live sales are uneven to steady at 80.50. Most producers continue to pass all bids. Trading remains mostly inactive in all other regions.

Thursday’s hog slaughter was estimated at 411,000 head, 3,000 less than last week, and 11,000 under last year. Terminal hogs were lightly tested from 1.00 lower to 2.00 higher on a live basis from 31.50 to 37. Missouri direct base carcass meat price closed steady from 48.00 to 53.00. Iowa/Minnesota hogs closed 1.31 lower at 56.34 on a carcass basis, the West was down .56 at 57.12, and the East was .47 lower at 54.81. Iowa butcher weights last week averaged .3 pounds lighter than the previous week, but 5.5 lbs heavier than last year and continue to resist the seasonal trend lower. Pork carcass cutout value on Wednesday fell to its lowest level since April 2003. A lower cash hog market is predicted for Friday.

Lean hogs settled 02 to 60 points lower. There was some light buying support earlier in the session on pre-report positioning. Market fundamentals remain bearish with overall consumer demand lackluster at best through the summer months. July was down 22 at 57.07, and August was .02 lower at 58.80. Pork trading was slow, with light to moderate demand and offerings. The lean carcass cutout was up 1.42 at 54.86.

Pork bellies ended 2 to 140 lower in a lightly traded session. July was down 1.40 at 58.80 and August was down 1.25 at 60.05.