Market News

Cash cattle trade develops

Chicago Mercantile Exchange live cattle futures were lower, as traders remain wary about beef demand and this week’s cash trade appears to be down sharply from last week’s levels. December was down $.40 at $166.45 and February was $.15 lower at $166.97.

Feeder cattle were mixed, mostly higher. The entire session was up and down and after you got past the nearby months, the word of the day seemed to be “uncertainty”. January was up $1.12 at $235.95 and March was $.15 higher at $232.05.

By Thursday afternoon, we saw some light trade in the North at $166 Live and $264 to $265 Dressed in Nebraska, and $263 to $265 Dressed in Iowa. On the dressed basis, that’s down around $2 to $3, but for live sales, that’d be a drop of $5, if trade in the South does develop at $166. Bids in the South are $167 to $168, with asking prices around $173. Widespread trade in the South will likely not occur until Friday.

At the Hub City Livestock feeder auction in South Dakota, estimated receipts were 7,150 head. Steers weighing 450 to 600 pounds were $6 to $8 higher and 601 to 750 pound steers were mostly steady, with instances of $4 higher, and the more than 950 pound category was mostly steady. Heifers weighing 400 to 450 pounds were steady to $3 lower, 451 to 600 pound heifers were $6 to $10 higher with an instance of up $12, and 601 to 650 pound heifers were $3 higher. Nearly have of the receipts were yearlings, with the remainder calves. USDA noted good to very good demand. 530 pound steers ranged from $284 to $319 and 936 pounders sold at $220 to $239.75. 519 pound feeder heifers were reported at $270 to $294.50 and a load of fancy heifers at 960 pounds brought $221.75 to $225.

Boxed beef was lower on light demand and light to moderate offerings. Choice was down $1.99 at $254.42 and Select was $1.52 lower at $240.26. The estimated slaughter of 110,000 head was down 12,000 on the year with no comparison to Thanksgiving last week.

Lean hog futures were mixed, with nearbys down and deferreds steady to firm. Packers do seem reluctant to raise bids, cancelling out some of the impact of tighter than anticipated market ready numbers. December was $.42 lower at $87.62 and February was down $.25 at $86.62.

Cash hog markets were steady to lower. Market ready numbers do look a little tighter than expected earlier on in the week, but processing margins are poor, likely discouraging packers from increasing bids at the moment.

National Direct barrows and gilts were $1.13 lower with a base price range of $82.77 to $86.25 for a weighted average of $84.42. The Eastern Cornbelt had no recent comparison with a range of $82.77 to $85.01 with an average of $84.28, the Western Cornbelt was down $1.05 at $83.50 to $86.25 for an average of $84.82, and Iowa/Southern Minnesota was $.87 lower at $83.50 to $86.25 with an average of $85.00. Midwest cash markets were steady with tops at $58 to $66. The Missouri Direct base carcass meat price was steady to $1 lower at $79 with supply and demand called light to moderate. Missouri sows were steady to $2 lower at $58 to $70.

The pork carcass cutout value was up $1.66 at $93.62. Butts and ribs were lower, the other primals were firm to sharply higher. The estimated hog slaughter of 427,000 head was 7,000 lower than a year ago.