Market News

Cattle trade in the North at steady to lower prices, the South is still quiet: June 19, 2009

Chicago Mercantile Exchange live cattle contracts settled mostly higher. Traders spent most of the session waiting for cash news and the cattle on feed report to be released after the close of trade. Traders bought August and sold June, and spreaders bought October and sold June and February. June settled .75 higher at 80.29, and August was up .42 at 82.12. Boxed beef cutout values were weak on light demand and moderate offerings. Choice beef was down .34 at 139.59, select was down .69 at 132.39.

Feeder cattle ended the week 20 10 105 points higher after trading mixed much of the session. Support came for higher live cattle contracts, buy stops and spreading. August was up .30 points at 98.10, and September was up .57 at 98.25.

Feeder cattle receipts at Missouri auctions this week totaled 26.070 head. Feeder steers and heifers under 600 lbs trended steady to 3.00 lower, over 600 lbs steady to 3.00 higher. Holstein steers weighing less than 600 lbs 2.00 to 4.00 lower, over 600 lbs steady. Missouri weather once again curtailed receipts this week, with much of the state receiving several inches of rain early followed by extreme heat and humidity the latter part of the week. Feeder steers medium and large 1, 660 head averaging 627 lbs traded at 106.26 per hundredweight, 635 heifers averaging 576 lbs brought an average of 97.41.
The weekly cattle slaughter was estimated at 672,000 head, 10,000 more than last week, but 22,000 less than last year. Cattle trading was moderate in Western Nebraska and active in Eastern Nebraska and Iowa/Minnesota Friday afternoon on moderate demand. Compared to last week, dressed sales trended 1.00 lower at 129 to 130, live sales about steady from 81.00 to 81.50. The South was still quiet at late afternoon.

Barrows and gilts were lightly tested at the terminals on a live basis, steady to .50 higher from 31 to 38. The Missouri direct base carcass meat price closed the week steady from 48 to 52. Iowa/Minnesota hogs closed .45 lower at 56.53, the West was down .46 at 56.85, and the East closed .26 higher at 54.51. The weekly hog slaughter was estimated at 2,062,000 head, 13,000 under last week, and 19,000 less than a year ago. Saturday’s slaughter was estimated at only 16,000 head. Most packers have enough hogs to cover their short term needs. Some sources in the export trade believe demand for pork will improve substantially through the second half of 2009 as the specter of H1N1 increasingly fades. Monday’s cash bid are expected to be steady to weak.

Lean hogs settled 60 to 265 points higher. Thoughts are that the bottom may have been established in the lean hog market and that drew a flurry of trade activity into the market on Friday. There was also some position evening ahead of the weekend. July settled 1.50 higher at 61.42, and August was up 2.65 at 61.80. The pork trade was very slow, with light to moderate demand and offerings. The lean carcass cutout was up .80 at 56.38.

Pork bellies ended the session higher on gains in the lean pit. July was up .65 at 60.15, and August closed 1.75 higher at 60.80.