Market News

Pork carcass cutout value ends sharply higher

Chicago Mercantile Exchange live cattle contracts settled 10 to 80 points lower on Monday. Bear spreading was the main feature in a lightly traded session. August settled 57 points lower at 83.27, and October was down 80 at 88.32. Boxed beef cutout values were generally steady on light to moderate demand and offerings. Choice beef was up .15 at 140.85, select was down .08 at 133.98.

Feeder cattle ended 15 to 102 points lower on spillover pressure from the live pit, bear spreading and gains in corn. August was down 92 points at 100.42; September was 67 lower at 100.30.

Feeder cattle receipts at the Oklahoma National Stockyards totaled 6700 head. Feeder steers and heifers were unevenly steady. The bulk of the supply was made up of mixed 1-2 and straight number 2 cattle. Many crossbreds were included in the run. Calves were steady to firm in a light test, and demand was good for all cattle. Feeder steers medium and large 1-2 weighing 600 to 700 pounds traded from 101.00 to 107.00, 6 to 7 weight heifers from 94.00 to 100.50.

Monday’s cattle slaughter was estimated at 124,000 head, 2,000 head less than last week, and 4,000 less than last year. Cattle country is quiet with bids and asking prices ill defined. The new show lists appear to be mixed. Early asking prices are around 84 + in the South and 134 + in the North. Last week cattle traded from 81 to 82 live and 129 to 130 dressed.

Terminal hogs were lightly tested and trended steady to as much as 4.00 lower from 28 to 33. The Missouri direct base carcass meat price was 1.00 to 2.00 lower from 43.00 to 47.00. Iowa/Minnesota hogs closed 2.34 lower at 46.06 weighted average on a carcass basis, the West was down 2.16 at 46.22, and the East was .80 lower at 45.91.Monday’s hog kill was estimated at 419,000 head, 3,000 more than last week, and 3,000 less than last year. Slaughter rates remain high and pork demand poor. Expect weakness to continue in the cash trade on Tuesday.

Lean hogs settled 110 higher to 50 lower with just a couple of the front months lower and 2010 contracts firmer. Position squaring from the weekend appeared to be the main feature on Monday morning. Sharply lower cash prices weighed on the spot month. August settled 50 points lower at 48.30, and October was up 10 at 45.00. Pork trading was slow, with light to moderate demand and offerings. Pork carcass cutout value was 2.08 higher at 56.65.

Pork bellies closed unchanged to 300 points lower with trade activity in the 2010 contracts very light. August was down the 300 point limit at 48.75, and February was unchanged at 79.57.