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Beef and pork values close lower on Friday
Cattle country was very slow on on Friday afternoon with business stymied by the wide range between bids and asking prices. Understandably feedlot managers were pricing cattle higher inspired by the board’s growing premium. On the other hand packers remained cautious, fearful of struggling wholesale beef prices. If the cash cattle trade is done for the week, packers will start out the week with lower chain speed plans as well as being quite short bought. Negotiated cash trades through Friday morning totaled about 81,784 head. Prices were steady to 1.00 higher at 114.00 live and 180.00 dressed. The weekly cattle kill was estimated at 637,000 head, 17,000 less than the previous week, and 28,000 fewer than 2011.
Boxed beef cutout values were lower on light demand and light to moderate offerings. Choice boxed beef was down 1.31 at 176.94, and select was 1.30 lower at 170.03.
Chicago Mercantile Exchange live cattle contracts settled 115 to 210 higher after buyers aggressively stepped back into the market. The surge higher continued to focus on the potential of tighter supplies over the short term and higher cost of production seen in the long term. Gains were pared some by lower boxed beef values at midday. August settled 1.42 higher at 119.60, and October was up 2.10 at 125.27.
Feeder cattle ended the session 130 to 175 higher despite the strong moves in corn prices during Friday’s session. Feeders received support from the higher moves in the live pit. August feeders settled 1.75 higher at 137.75, and September was up 1.57 at 140.40.
Feeder cattle receipts at Missouri auctions this week totaled 18,666. Compared to last week, feeder steers and heifers sold steady to 7.00 lower, with instances of 10.00 lower, although some calves mid to late week sold steady to 3.00 higher and some featherweights weighing less than 450 lbs. sold sharply higher following weeks of sharp losses. The feeder supply was moderate as early marketing’s of cattle continues due to the drought. 100 percent of the state is now in severe drought with nearly 70 percent falling in the extreme to exceptional category. Feeder steers, medium and large 1 weighing 676 lbs. averaged 134.05 per hundredweight. 618 lb. heifers traded at an average of 124.41.
Lean hogs settled 117 points higher to 60 lower. Overall lean hog futures gained moderate to strong support from outside commodity market. August and October both closed lower as traders rolled from the nearby contracts. The most aggressive support was seen in the deferred contracts. August settled .60 lower at 95.20, and October was down .10 at 91.32.
There was slow market activity with light demand in the cash hog market to end the week. Barrows and gilts in the Iowa/Minnesota direct trade closed 1.78 lower at 93.56 on the carcass basis, the West was down 1.65 at 93.39, and the East was 3.02 higher at 89.50. Missouri direct base carcass meat price closed steady at 85.00. Terminal hogs were steady on a live basis from 55.00 to 61.00.
Pork trading was very slow, with light demand and light to moderate offerings. Pork carcass cutout value was down .64 at 92.27.
The weekly hog slaughter totaled 2,003,000 head, 42,000 greater than last week and 44,000 more than last year.
Looking at recent cash stability and surging lean hog futures, some believe that packers have finally cut into substantially lighter hogs, stressed by the season’s extreme heat. They believe next week’s Iowa average weight could really drop off the cliff.
2012-07-27 14:27:40
Source: http://brownfieldagnews.com/2012/07/27/beef-and-pork-values-close-lower-on-friday/
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