Choppy markets hurt cattle

Cattle markets were choppy Tuesday. “The market closed slightly lower on the day and well above the lows,” the Hightower Report said. “October cattle experienced choppy and two- sided trade early in the session, but traded moderately lower on the day into the midsession before a slow recovery to just slightly down on the day.”

Hog markets managed to close higher, with October hitting its highest close since late June. “The market experienced choppy and two-sided trade early today but October closed moderately higher on the day and experienced the highest close since June 20,” the Hightower Report said. “The buying pulled the market up to the highest level since July 3.”

Lean hogs

In weighted average negotiated prices for barrows and gilts, USDA reported;

• National carcass base was 75 cents higher to $69.36/cwt.
• National live was 38 cents lower to $52.44
• Iowa-Minnesota carcass base was up 19 cents to $70.70

USDA reported carcass cutout values this afternoon rose $2.90 to $75.80/cwt.

Pig prices in China helped push hog markets higher. “A surge higher in cash pig prices in China has helped to support the buying,” the Hightower Report said. “News that Hong Kong pork prices hit an all-time high this week added to the positive tone.”

The technical trend for hog markets was looking positive in the short-term. “The market's short-term trend is positive on the close above the 9-day moving average,” the Hightower Report said. "The market could take on a defensive posture with the daily closing price reversal down.”

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Cattle

Boxed beef cutout values this afternoon were steady to weak on light to moderate demand and moderate offerings, the USDA said.

• Choice was down 34 cents to $212.93/cwt.
• Select fell 5 cents to $189.16.

In negotiated cash sales in Nebraska, there was no reportable trade, the USDA said. In Iowa-Minnesota, there was also no reportable trade.

Prices might be overbought from a technical perspective, but cattle markets were avoiding a major selloff. “Technically, prices may be a bit overbought since the rally off the recent lows, but sellers have been few and far between,” Stewart-Peterson said. “Any selling pressure has been met with buyers and prices have consistently held the previous session's lows.”

Cattle markets drifted lower Tuesday, despite hopes of seeing strength in retail beef values. “Live cattle have made an inside session today and are still waiting for retail beef values to confirm the anticipated strength,” Stewart-Peterson said.