The cash cattle trade was quiet on Monday afternoon following the distribution of the new showlists. Ready numbers of cattle are generally larger than last week, yet not by a great deal. Early asking prices are around 121.00 to 122.00 in the South and 193.00 to 195.00 in the North. The slaughter was estimated at 130,000 head, even with last week, 2,000 more than a year ago.
Boxed beef cutout values were weak on light to moderate demand and moderate offerings. Choice beef closed .51 lower at 197.49, and select was also down .51 at 180.60.
Live cattle contracts settled 10 to 132 points higher on Monday with the nearby contracts showing the most significant gains. The board was supported by short covering and general commodity buying. The support in outside markets limited any pressure that was expected to be seen through the live cattle futures market. Traders remain focused on the strength in both the grain and lean hog futures contracts. June settled 1.05 higher at 117.20, and August up the most at 117.97 up 1.32.
Feeder cattle ended the session mostly higher after trading lower much of the session due to sharp gains in the corn market, However support in the live pit and lean hogs gave support to market near the close. The sharp rally in corn prices could create long term implications to production costs which could limit additional active buyer interest. June settled .10 higher at 156.12, and September was up .32 at 157.75.
Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 7,000 head. Compared to last week early sales of all classes of steers and heifers were 2.00 to 4.00 lower. There was a limited test of Medium and large 1 cattle. Feeder steers medium and large 1 weighing 550 to 600 lbs. traded from 166.50 to 178.25. 550 to 600 pound heifers brought 150.00 to 151.50.
Sharp gains developed in the lean hog futures on Monday and settled 10 t0 240 points higher with the strongest gains in the nearby contracts. The rally followed the surge in the outside markets as well as expectations the cash markets will show additional firmness through the early part of the week. The strength in the July contract was somewhat surprising given the lack of activity in cash hog markets at midday. July settled 2.42 higher at 95.45, and August was up 2.02 at 93.22.
Cash hog market activity was slow to moderate with moderate to good demand. Iowa/Minnesota direct trade hogs closed 2.69 higher at 102.62 weighted average on a carcass basis, the West was up 2.86 at 102.15, and the East was 2.85 higher at 95.17. Missouri direct base carcass meat price was steady to 8.00 higher from 85.00 to 92.00. Terminal hogs closed steady to 2.00 higher with an instance of 4.00 to 5.00 higher at Red Oak Iowa from 60.00 to 65.00.
Pork trading was slow, with moderate demand and very light to light offerings. Pork carcass cutout value was up .21 at 94.33.
The hog slaughter totaled 391,000 head, 5,000 greater than last week, but 3,000 less than last year.
The supply of ready barrows and gilts is expected to be smaller again this week, forcing packers to push cash bids higher, cut chain speed further, and demand more money for pork cuts.