Market News

Pork carcass cutout ends sharply higher

Pork carcass cutout ends sharply higher

Chicago Mercantile Exchange live cattle contracts settled 50 points higher to 42 lower. Cattle futures rallied impressively through the morning hours, but significant selling pressure developed late in the session linked to commercial interests and profit taking. There was some selling of the back months and buying August. There was some concern in the market for the direction of this week’s cash trade. August closed 12 points lower at 84.92, and October was down 15 at 90.27. Boxed beef cutout values were steady to firm on moderate demand and offerings. Choice beef was down .06 at 138.08 and select was up .34 at 131.70.

Feeder cattle ended 7 to 65 points lower following the reversing pattern of the live pit. Spreaders sold the back months and bought forward options. August settled 7 points lower at 103.65 and September was down 15 at 103.20.

Feeder cattle receipts at the Ozarks Regional Stockyards at West Plains, MO totaled 4700 head on Tuesday. Compared to last week steers and heifers over 400 pounds trended 1.00 to 4.00 higher, heavier weights were not well tested. Feeder steers medium and large 1 and 1-2 weighing 500 to 600 pounds traded from 102.00 to 115.00 per hundredweight, 7 to 8 weights from 96.25 to 102.50. 500 to 600 lb heifers brought 93.00 to 99.00, and 7 to 8 weight heifers traded at 92.00 to 95.00 at West Plains.

Cattle slaughter was estimated at 120,000 head on Wednesday, 7,000 less than last week, but 2,000 more than last year. The cash cattle market remains untested. Bids of 79 to 81 dollars reported in the South where feedlot operators were asking 84.00 to 85.00. There were a few dressed bids in Nebraska from 127.00 to 128.00 and asking prices are 134 + in the North. Most market watchers expect significant business will be delayed until Friday.

Hog slaughter was estimated at 406,000 head 17,000 more than last week, but 6,000 less than last year. Barrows and gilts at the terminals trended steady to 1.00 higher from 32.00 to 41.00, with a few as much as 2.00 higher topping at 42.00. The Missouri direct base carcass meat price closed steady to 1.00 lower from 51.00 to 53.00.  Iowa/Minnesota barrows and gilts closed 1.02 higher at 56.90 on a carcass basis; West was up .72 at 56.78, East up 1.00 at 55.50. For the first time since May 26^th the pork carcass value closed over $60 on Tuesday. Processing margins have improved significantly over the last ten days. Thursday’s cash market is expected to be steady to higher..

Lean hog futures ended the session 2 to 75 points higher with the exception of July that expired at noon at 58.45 down 25 points.  Action in the lean pit was quite lackluster, both in terms of price movement and trade volume. August settled 42 points higher at 64.02, and October was up 15 at 59.10. Pork trading was slow to moderate with moderate to good demand and mostly light offerings. The lean carcass cutout was up 3.28 at 63.33.

Pork bellies closed 30 to 125 points lower on a general lack of buying interest. July was down 100 points at 60.30, and August was 125 lower at 60.05.