Market News

Live cattle contracts settled mixed on the Chicago Mercantile Exchange on Tuesday: July 7, 2009

Selling pressure from outside markets created a bearish tone to the cattle markets. The overall tone of the market has soured following last week’s strong gains according to DTN. Some buyers remained on the sidelines and waited for the dust to settle. August settled 22 points lower at 84.20, and October was down 62 at 89.20. Boxed beef cutout values closed steady to firm on light demand and offerings. Choice beef up .29 at 138.00, and select was up .11 at 132.53.

Feeder cattle finished the session 42 to 115 lower with August down the most. The continued weakness in nearby live contracts pressured feeders. Steady corn futures earlier in the session added additional pressure before they turned lower near the close. August was down 115 points at 102.65, and September was 55 lower at 102.40.

Feeder cattle receipts at the Joplin, MO Regional Stockyards on Monday totaled 4221 head. Compared to last week, steers under 600 pounds were steady to 1.00 higher, heifers under 650 lbs were 2.00 to 3.00 higher, steers over 800 lbs and heifers over 650 lbs were 2.00 to 4.00 higher. Demand and supply was moderate. Feeder steers medium and large 1 averaging 883 lbs traded at 97.21, 528 lb heifers at 99.15.

The Tuesday cattle slaughter was estimated at 121,000 head, 9,000 less than last week, and 6,000 fewer than last year. Bids were hard to come by, but that is about par for a Tuesday. Early asking prices remained firm at 85 to 86 live and 135 plus on the dressed in the North. Early week boxed beef movement was fairly decent with 380 loads on Monday, not a bad reflection of retail clearance over the holiday weekend. Slaughter cattle at Dunlap, Iowa trended .75 to 1.25 higher on steers and 1.25 to 1.75 higher on heifers. Choice 2-4 steers traded from 82.20 to 83.00, and heifers from 80.00 to 82.60.

Tuesday’s hog slaughter was estimated at 406,000 head, 11,000 less than last week, and 18,000 fewer than last year. Barrows and gilts at the terminals trended 1.00 lower to 2.50 higher, but most were steady from 35.00 to 41.00. Missouri direct base carcass meat price was steady to 2.00 higher from 53.00 to 54. Barrows and gilts in the Iowa/Minnesota direct trade closed .06 lower at 57.60 on a carcass basis, the West was up .13 at 57.74, and the East was up .77 at 55.72. Barrow and gilt carcasses averaged 199 pounds for the week ending June 20th, that is the same as the previous week, but 5 pounds heavier than a year ago. Neither heat nor nonstop red ink appeared to be working to check tonnage. Wednesday’s cash market is expected to be near steady.

Lean hogs settled 20 points higher to 82 lower. The front months received support from the stability of cash prices and an overall unchanging index market. The deferred issues closed lower on outside market pressure. July was up 5 points at 60.70, and August was up 15 at 57.52. Pork trading was moderate, with light to moderate demand and mostly moderate offerings. Pork carcass cutout was down .49 at 54.23.

Pork bellies closed higher as traders continued to buck the trend of the outside markets. Both July and August were 200 points higher, July 57.20, and August 57.52.

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