USDA Mandatory is reporting a moderate cattle trade developed in Central and Eastern Nebraska Thursday afternoon on moderate to good demand. Compared to last week, dressed sales are steady to 1.00 higher at 194.00 to 195.00. Trading was light to moderate in Iowa with dressed sales at 195.00. Trading remains inactive in all other areas. Most showlists in Kansas and Texas are priced at 123.00, as much as 5.00 above preliminary packer bids. The slaughter totaled 130,000 cattle, 4,000 more than last week, but even with a year ago.
Boxed beef cutout values were firm on choice and lower on select with light to moderate demand and offerings. Choice boxed beef was up .31 at 197.31, and select was down 1.05 at 197.05.
Live cattle futures settled 60 to 102 points higher on the Chicago Mercantile Exchange on Thursday. The aggressive movement in the lean hog futures and continued pressure in the outside markets seemed to have drawn the attention of noncommercial traders, especially in the nearby summer contracts. June settled .65 higher at 117.10, and August was up .97 at 118.90.
Feeder cattle ended the session 65 to 137 points higher posting moderate to strong support. Buyers focused on the lack of support in the corn market and the renewed surge of buyer activity in the live cattle futures. August settled .72 higher at 156.80 and September was up .75 at 158.12.
Feeder cattle receipts at the Hub City Livestock Auction at Aberdeen, SD totaled 2884 head on Wednesday. Compared to last week, feeder cattle sold unevenly steady. There was an active market with moderate demand. 144 head of feeder steers, value added weighing 804 lbs. traded at an average of 154.50 per hundredweight. 199 heifers weighing 831 lbs. averaged 1190.99 per head.
Lean hogs settled 45 to 300 points higher on Thursday. Sharp gains quickly developed in the market with nearby contracts posting gains over 2.00 and July ending the daily limit higher. Although traders continued to focus on additional potential fundamental support, the continued pressure in outside markets drew additional trade activity into the hog complex, allowing investors an alternative from eroding stock and outside commodity markets. June settled 2.62 higher at 89.80 and July was up the 3.00 limit at 91.00.
There was moderate activity with good demand for the hogs on Thursday. Iowa/Minnesota barrows and gilts closed 1.15 higher at 84.26 on a carcass basis, the West was up 1.07 at 84.07, and the East was up 1.41 at 81.98. Missouri direct base carcass meat price was steady from 77.00 to 78.00. Terminal hogs were steady to 1.00 higher from 53.00 to 56.00.
Pork trading was slow to moderate with light to mostly moderate demand and light to moderate offerings. Pork carcass cutout value was up 1.17 at 81.95. Suggestions the pork carcass value can continue to appreciate without any significant decrease in production seem dubious given the lackluster wholesale performance of the last 30 days.
Hog slaughter was estimated at 424,000 head, 9,000 greater than last week, and 6,000 more than last year.