The cash cattle trade was dead on Friday with business completed for the week. All trade volume totals were rather light in the South. Aggressive chain speed through the week indicates that country movement remained more than adequate; packers will start the week with better margins, but eager to learn of Labor Day meat case clearance. Feedlot managers are expected to price the new show lists higher encouraged by the continuing strength of futures. USDA Mandatory reported negotiated confirmed sales for the week at 127,306 head through Friday morning. Last week’s trade totaled 118,768 head. Cattle slaughter for the week under federal Inspection was estimated at 669,000 head, 8,000 less than last week, but 7,000 more than a year ago. Boxed beef cutout values were weak on very light demand and light to moderate offerings. Choice boxed beef is down .24 at 162.62, and select is .83 lower at 155.92.
Chicago Mercantile exchange live cattle contracts settled 67 points lower to 60 points higher. Corn prices skyrocketed and the early cattle trade was focused on the higher cost of production limiting buyer interest in the cattle. But as corn prices held double digit gains there was increased focus on the potential of lower beef production levels. This could tighten supplies through the next several months. October settled unchanged at 98.45, and December was down .67 at 100.65.
Feeder cattle contracts were unchanged to 57 points lower with the sharp rally in the corn market creating significant price shifts in the deferred contracts. Lack of support from the live pit also contributed to the weakness in the feeder pit. September ended .57 lower at 114.17, and October was down .42 at 115.07.
Feeder cattle receipts at Missouri auctions this week totaled 34,844 head. Compared to last week, steers under 700 pounds trended steady to 3.00 lower, over 600 pounds steady to 1.00 higher Heifers were 1.00 to 4.00 lower with the most decline on weights less than 600 pounds. Demand was moderate to good, and the supply was moderate. Feeder steers medium and large 1 weighing 575 pounds traded at 123.58, 571 pound heifers brought 109.66 per hundredweight.
Barrows and gilts in the Iowa/Minnesota direct trade closed 1.36 higher at 78.57, the West was up .98 at 78.15 and the East was down .02 at 77.32. Missouri direct base carcass meat price closed steady from 73.00 to 74.00. The weekly hog slaughter was estimated at 2,117,000 head, 7,000 more than last week, but 115,000 under last year. Saturday kill plans look somewhat larger than assumed earlier in the week. It is now estimated at 81,000 head. Processors will probably push after Labor Day to compensate as much as possible for lost production. The following Saturday should be busy with a slaughter of 200,000 head or better.
Pork trading was slow, with light demand and light to moderate offerings. The pork carcass cutout value was down 1.07 at 91.31.
Lean hogs settled 37 to 95 points higher despite the softness in the cash hog trade as renewed buying support jumped into the lean hog futures. Spring contracts benefitted the most from the rise in corn prices as higher feed costs could limit herd expansion. October was .77 higher and settled at 77.20, and December was up .50 at 74.65.
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