Market News
Live cattle and hog contracts settled lower on outside market pressure: July 8, 2009
Chicago Mercantile Exchange live cattle contracts settled 60 to 110 points lower on pressure from outside markets, and reduced chain speed. Traders are also concerned about this week’s cash prices as bids and asking prices remain quite far apart. August live cattle settled 85 points lower at 83.35, and October was down .87 at 88.32. Boxed beef cutout values closed steady to firm on light to moderate demand and offerings. Choice boxed beef was up .45 at 138.45, select was up .10 at 132.63.
Feeder cattle settled 25 to 100 points lower. Trading was light through much of the session however feeder issues did rebound and closed off the day’s lows. August was down 100 points at 101.65, and September finished down 55 at 101.85.
Feeder cattle receipts at the Ozarks Regional Stockyards at West Plains, Mo totaled 4331 head. Compared to last week, steers and heifers trended steady to 2.00 higher, with several 650 to 750 weight steers 2.00 to mostly 3.00 higher. Supply was moderate with demand good, although best for the most part on weaned calves with shots and yearling cattle. Feeder steers medium and large 1 averaging 624 pounds traded at 104.68, 741 pound heifers at 96.04 per hundredweight.
Cattle slaughter was estimated at 127,000 head the same as last week and last year. The cash cattle market was untested for the most part on Wednesday afternoon. DTN reported they were waiting confirmation that a few deals may have been cut in Nebraska at 130.00 on a dressed basis. Bids in the South are at 80 to 81 and asking prices around 85 to 86. In the North feedlot operators are asking 135.00 plus and bids are from 129 to 131 according to private sources.
Hog slaughter was estimated at 393,000 head, 24,000 less than last week, and 17,000 under a year ago. Barrows and gilts at the terminals trended fully steady from 35.00 to 41.00. Missouri direct base carcass meat price closed steady from 53 to 54. Iowa/Minnesota hogs closed .38 lower at 57.10, the West was down .07 at 57.58, and the East closed at 55.56 down .20 on a carcass basis. Although packers have slowed chain speed it would appear they have plenty of early July contracts to pull on. Thursday’s market is predicted to be steady to weak.
Lean hogs settled 90 to 177 points lower on pressure from the outside markets, however they did come back some and closed up from the day’s lows. Lower cash prices in the direct trade exerted additional pressure on the market. July settled 177 points lower at 58.92, and August was down 117 at 61.02. Pork trading was slow, with light demand and light to moderate offerings. The pork carcass cutout was up 1.31 at 55.55.
Pork bellies closed 70 higher to 120 points lower with the lower values coming in the deferred contracts on the losses in other livestock contracts. July was up 70 points at 57.90, and August was up 47 at 58.00.