Market News

Feedlot cattle trade in the north

USDA Mandatory reported cattle trading was light in all regions on Thursday on light demand. Around 1200 head of cattle in Nebraska traded at 248.00 to 251.00 dressed. Close to 5200 head in Iowa/Minnesota at 158.00 to 160.00 live and 248.00 to 252.00 dressed. There were not enough in any area for an adequate market test. Asking prices remain firm around 165.00 to 167.00 in the South and 255.00 plus in the North. Thursday’s cattle slaughter at 116,000 head is down 3,000 from last week but even with last year.

Boxed beef cutout values were steady on the choice and sharply lower on select on light to moderate demand and offerings. Choice boxed beef is up .08 at 251.14, and select 236.35 down 1.83.

Live cattle contracts on the Chicago Mercantile Exchange settled 17 to 232 lower. Active selling pressure quickly redeveloped across the nearby live cattle futures with triple digit losses holding in the October and December contracts. The inability of sellers to push boxed beef prices significantly higher through the week created some widespread legitimate concerns about the sustainability of prices at this level through the upcoming fall months. October settled 2.32 lower at 157.37 and December was down 2.40 at 159.00.

Feeder cattle settled 80 to 162 points lower as traders focused on aggressive triple digit losses in the nearby live cattle futures. The expectation that additional pressure in live cattle could develop over the coming days caused many feeder cattle traders to quickly square positions. September settled .80 lower at 228.05 and October was down 1.45 at 225.60.

Feeder cattle receipts at the Huss Platte Valley Auction in Nebraska totaled 3066 head on Wednesday. Compared to two weeks ago steers and heifers traded at sharply higher prices. Demand was good on all offerings from beginning to end. 236 head of feeder steer calves with an average weight of 629 pounds brought 265.05 per hundredweight. 119 heifers averaging 624 pounds traded at 247.37.

Lean hogs settle .65 higher to 145 points lower. The market closed mixed after continued up and down movement in a moderate range for most of the session. The combination of sharp cash price reductions and strong gains in pork values in the morning reports created mixed signals that eroded nearby support but helped to draw buyer interest into summer 2015 contracts. October settled .72 lower at 106.37, and December was down 1.45 at 97.20.

There was moderate hog market activity and demand on Thursday afternoon. Barrows and gilts in the Iowa/Minnesota direct trade were .16 lower at 102.84 weighted average on a carcass basis, the West was down .01 at 102.58, and the East had no price comparison at 95.67.  The Missouri direct base carcass meat price was steady from 87.00 to 94.00. Midwest barrows and gilts were fully steady from 60.00 to 70.00 live.

The pork carcass value was up 1.38 FOB plant at 107.53. Loins ended over 5.00 higher in the afternoon report.

For the week ending September 6, the average weight of Iowa barrows and gilts jumped to 282.1 pounds, 1.5 pounds heavier than the previous week and 11.4 pounds bigger than 2013. Seasonally, market hogs should continue to grow.

Thursday’s hog slaughter was estimated at 411,000 head, 6,000 more than last week, but 19,000 less than last year.