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Feedlot cattle trade at higher prices than last week

USDA Mandatory reported cattle trading was moderate in the Southern Plains on moderate to good demand. Live sales traded mostly 1.00 to 2.00 higher than last week at 120.00 to 121.00. A light cattle trade was reported in Nebraska and Iowa with live sales 120.00 to 121.50, and dressed sales 3.00 higher than last week at 190.00 to 192.00. Packers continue to slow chain speed and Thursday’s slaughter was 118,000 head, 8,000 less than last week, and down 12,000 from last year.

Boxed beef values were steady to firm with moderate demand and light to moderate offerings. Choice beef was up .04 at 185.08, and select was .59 higher at 167.32.

Chicago Mercantile Exchange live cattle contracts settled 40 points higher to 115 lower. Futures were pressured by the lack of outside support much of the session, but started to firm by midsession. There was some profit taking. Higher cash prices also lent support to futures. October was up .05 at 121.45, but December was down 1.15 at 121.80.

Feeder cattle ended the session 22 higher to 62 lower. Nearby futures were pressured as traders focused on November and January placements. Higher corn values also weighed on feeder contracts. October settled .07 higher at 139.27 and November was down .62 at 142.02.

Feeder cattle receipts at the Hub City Livestock Auction at Aberdeen, SD totaled 5102 head on Wednesday. Compared to last week feeder steers and heifers sold mostly 2.00 to 3.00 higher with good demand and an active market. 627 head of feeder steers medium and large 1 averaging 888 pounds brought 136.07 per hundredweight. 660 heifers weighing 826 pounds averaged 131.30.

Lean hogs settled mostly lower pressured through the entire morning but did recover from the sell off tied to profit taking. Dow Jones Newswires reported the hog weakness was surprising given the record high prices for pork as exports and firm domestic demand continue to match seasonal expansion in supplies. December finished .10 lower at 89.97, and February was down .02 at 92.05.

The Thursday hog market was active with good demand. Barrows and gilts in the Iowa/Minnesota direct trade closed .67 higher at 92.28 on a carcass basis, the West was up .73 at 92.01, and the East was 1.25 higher at 92.81. Missouri direct base carcass meat price closed steady to 1.00 higher from 86.00 to 88.00. Terminal hogs were steady from 59.00 to 63.00.

Pork trading was slow with light to moderate demand and moderate offerings. Pork carcass value was down .73 at 99.40.

Thursday’s hog slaughter at 428,000 head is the same as last week, but 7,000 more than last year. The weekly slaughter is running 9,000 more than last week, and 32,000 greater than last year. Saturday’s projected slaughter has been cut back to around 180,000 head. Friday’s cash market looks about steady.

 

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