Market News

Feeder cattle trend mixed at Joplin

Chicago Mercantile Exchange live cattle contracts closed lower with the exception of the August contract.  Selling of the back months and buying forward contracts on spreads appeared to be the main market feature. Traders are waiting for cash development news. August settled at 85.05 up 27, and October was down 12 at 90.12.

Feeder cattle settled 10 to 87 points lower on softness in the live cattle pit. Although most corn contracts closed higher today, the weakness in the corn market over the last several trading sessions has limited the overall cost of feeding cattle. DTN’s Rick Kment says, this may help to draw additional buying activity into the market and increase placements. August feeders ended 67 lower at 103.12, and September was down 87 points at 103.35. Boxed beef cutout values were steady to firm on light demand and offerings. Choice boxes were .58 higher at 138.14; select was .08 lower at 131.36.

Feeder cattle receipts at the Joplin Regional Stockyards on Monday totaled 5146 head. Compared to last week feeders less than 600 lbs steady, 600 to 850 lbs unevenly steady to 1.00 higher, over 850 lbs 2.00 to 3.00 lower.  Feeds steers medium and large 1 and 1-2 weighing 500 to 600 lbs 96.50 to 109.50, same weight heifers 90.00 to 103.00. 7 to 8 weight steers 95.25 to 104.50, 700 to 800 lb heifers 86.00 to 97.85 per hundredweight.

Tuesday’s cattle slaughter was estimated at 126,000 head, 5,000 more than last week, but 1,000 less than last year. Slaughter cattle at Dunlap Iowa sold .25 to .75 lower on choice steers and 1.00 lower and heifers. Steers topped at 82.70 and heifers at 81.75. Manchester Livestock Auction, Manchester, IA fat cattle sale 699 head. High yielding choice and prime steers topped 84.85 and heifers at 83.85. The feedlot trade was quiet with a few bids in the South at 81 where asking prices remain at 84 to 85. No bids in the North and asking 134 +.

Hog slaughter was estimated at 401,000 head, 5,000 less than last week, and 6,000 fewer than last year. Terminal barrows and gilts trended steady to 1.00 lower on a live basis from 33.50 to 40.00. The Missouri direct base carcass meat price was steady to 2.00 lower from 51 to 54. Iowa/Minnesota hogs closed .60 lower at 55.80 on a carcass basis, the West was down .32 at 56.06, and the East was .10 lower at 54.50. Despite improved carcass value packer margins remain poor and chain speed continues to lag behind last week and last year. Wednesday’s market is expected to continue to show weak to lower cash bids.

Lean hogs settled 65 points higher to 80 lower, with the soon to expire spot July off the most. Strong to moderate gains were posted in August and October early in the session but buying support waned and the early gains slipped some. The only other contract to show a loss was the May 2010. July was down 80 points at 58.70, but August was up 60 at 63.60. Pork trading was slow to moderate, with light to moderate demand and mostly light offerings. Pork carcass cutout value was up .70 at 60.05.

Pork bellies ended 10 to 120 points lower after spending most of the morning slightly higher in a very lightly traded market. July and August were both down 120 points at 61.30.