Market News

Southern cattle trade at steady to lower prices

Live cattle contracts on the Chicago Mercantile Exchange closed 30 to 132 points lower as traders remain bearish about the overall outlook for the market, even though there are signs that retail demand may be increasing. Lower corn prices had a negative influence on the deferred issues. August settled down 100 points at 85.02, and October was off 132 at 89.80. Boxed beef cutout values were higher on light demand and offerings. Choice beef was up 1.57 at 142.14, select was up 1.22 at 135.53.

Feeder cattle contracts settled 12 to 50 points lower following the selloff in the live pit and lean hogs. The overall fundamentals of the feeder cattle markets remain stable.  Cash feeder prices also remain stable, with feeders looking for additional placements, but very cautious about posting higher price levels. August finished 12 points lower at 103.12, and September was down 50 at 102.75

Feeder cattle receipts at the Ozarks Regional Stockyards at West Plains, MO totaled 4300 head on Tuesday. Compared to last week, steers 300 to 700 lbs were 4.00 to 5.00 higher with heavier steers mostly steady. Heifers weighing 300 to 600 lbs were 3.00 to 4.00 higher with those over 600 lbs steady. Feeder steers medium and large 1 averaging 821 lbs traded at 98.54, 629 lb heifers brought 96.11 per hundredweight.

Wednesday’s cattle slaughter was estimated at 127,000 head, 7,000 more than last week and 5,000 more than last year at this time. USDA mandatory reported cattle trading was slow in Kansas on light demand. Compared to last week early live sales were 1.00 lower at 83.00 with several sellers passing the current bids. Dressed sales trended steady with last week at 132.00. Trading was limited in the Texas Panhandle with a few live sales at 83.00. Live sales in Iowa/Minnesota were 1.00 higher from 83 to 84. DTN reported a few cattle traded in Nebraska at 84.00.

Hog slaughter is estimated at 406,000 head, 5,000 more than last week, but 13,000 less than last year. Barrows and gilts at the terminals trended steady to 1.00 higher from 34 to 43, with a top of 44. Missouri direct base carcass meat price closed steady from 52 to 55. Iowa/Minnesota hogs closed .32 higher at 58.59, the West was up .28 at 58.73, and the East was down 1.10 at 56.55. Packer margins continue to improve and chain speed should continue to accelerate for the remainder of the week. Saturday kill numbers are expected to be larger than last week. Thursday’s market is projected to be steady to firm.

Lean hogs settled 25 to 82 points lower. Positive short term fundamentals seen in the market the last couple of days didn’t seem to be enough to keep traders interest according to DTN. The lean issues rebounded some at midsession and closed above the lows of the day. August was down 40 points at 62.10, and October was down 82 at 57.32. Pork trading was very slow, with mostly light demand and light to moderate offerings. Pork carcass cutout value was down .24 at 66.46.

Pork bellies closed 105 higher to 100 points lower following the sharp losses on Tuesday. Light buying was seen in the nearby contract, althou8gh additional pressure was seen in the 2010 issues. August finished 105 higher at 63.25, and February was 100 lower at 83.80.

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