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Boxed beef cutouts close substantially higher
The cash cattle trade was not tested on Wednesday afternoon, and there is nothing to suggest significant business will develop before Thursday or Friday. Asking prices are firm at 121.00 plus in the South, and 190.00 plus in the North where there were a few bids from 182.00 to 186.00. Feedlot resolve seemed to be strengthening due to the higher futures and the renewed weakness in the basis. The kill totaled 127,000 head, 1,000 less than last week and last year.
Boxed beef cutout values ended the day higher on moderate demand and light to moderate offerings. Choice beef was up 1.52 at 181.42, and select was 1.40 higher at 175.35.
Chicago Mercantile Exchange live cattle contracts settled higher on Wednesday. The combination of commercial and noncommercial support flooded into the market following the move higher in the overnight trade. Additional support came from the strong gains in the boxed beef cutout values and the cash fundamentals. August was up 1.85 at 121.85, and October ended 1.50 higher at 125.67.
Feeder cattle closed 75 to 132 points higher. Renewed support in the corn futures had very little effect on the feeder cattle market. Support came from the higher values in the live pit. The market was lightly traded, and that lead to the triple gains holding through the close. August was up 1.12 at 139.77, and September was up 1.30 at 140.30.
Feeder cattle receipts at the Ozarks regional Stockyards at West Plains, Missouri totaled 2750 head on Tuesday. Compared to last week, steers weighing 350 to 650 lbs. trended 8.00 to 10.00 higher. Weights over 650 lbs. although not well tested in the previous sale were 1.00 to 4.00 higher, light calves weighing less than 350 lbs. were steady to strong with last week’s sharp upturn. Heifers traded 2.00 to 8.00 higher. The supply was moderate, and the quality was not as attractive, especially early, but did improve later in the day with lots of condition in the buyers favor. Feeder steers, medium and large 1 averaging 616 lbs. traded at an average of 138.63 per hundredweight. 623 lb. heifers brought 129.45.
Lean hogs settled mixed in a wide range with spot August holding on to a strong triple digit gain. The expiration of the August contract is creating some uncertainty in the market with a nearly $16.00 price spread between August and October futures contracts. The uncertainty of the corn supply and potential feed price levels is keeping most buyers out of the market. August settled at 91.57 up 1.65, and October was up .70 at 75.62.
Pork trading was slow, with light to moderate demand and offerings. Pork carcass cutout value closed .32 lower at 92.48.
The cash hog market was active on Wednesday with good demand. Barrows and gilts in the Iowa/Minnesota direct trade closed 1.96 lower at 90.18 on a carcass basis, the West was down 1.59 at 90.20, and the East was 3.24 higher at 88.88. Missouri direct base carcass meat price closed steady from 84.00 to 86.00. Terminal hogs were steady to 1.00 higher from 55.00 to 61.00 live.
DTN reports several major hog buyers have been complaining this week about increasing numbers of lighter butchers in the daily mix. Producers could be pulling numbers forward and/or throwing away young gilts.
The Wednesday hog kill at 410,000 head, is 1,000 more than last week and last year.
2012-08-08 14:42:27
Source: http://brownfieldagnews.com/2012/08/08/boxed-beef-cutouts-close-substantially-higher/
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