Market News

Live cattle start week mixed

 

Chicago Mercantile Exchange live cattle futures were mixed, watching the distribution of this week’s cash showlist. Contracts were also digesting last week’s cash trade and cattle on feed numbers. June was $.32 lower at $151.80 and August was down $.07 at $150.62.

Feeder cattle were higher, supported by those bullish on feed numbers. August was $.60 higher at $219.60 and up $.52 at $218.52.

Direct cattle markets were quiet Tuesday. The big activity was the distribution of this week’s showlist. Initially, market ready numbers look mixed, larger in Texas, but smaller in Colorado, Kansas, and Nebraska. Asking prices are around $163 in the South and $258 to $260 in the North. Last week, most of the Southern trade was done on Wednesday at $159 to $163 Live, mainly $160 to $161. Northern activity ranged from $250 to $253, mostly at $252. Trade volume totals were mixed. Widespread business this week isn’t expected until Thursday or Friday.

At the feeder cattle auction in Russell, Iowa on Monday, there was no comparison as there had not been a test for three weeks. Receipts totaled 4,254 head, a little bit less than the 4,300 reported this time last year. Trade was active and demand was called very good. Most of the receipts were feeder steers weighing more than 600 pounds. 700 to 793 pound feeder steers ranged from $220 to $252. 651 to 697 pound feeder heifers sold at $220 to $236.25.

Boxed beef was higher on moderate demand and light to moderate offerings. Choice was up $.82 at $261.07 and Select was $1.58 higher at $249.20. The estimated cattle slaughter of 115,000 head was 1,000 above last week, but 6,000 below last year.

Lean hog futures were lower on demand uncertainties and traders squaring up relative to the cash index. DTN reports the cash index is $82.91. June was $.55 lower at $83.17 and July was down $.92 at $82.80.

Cash hogs started the holiday shorted week off a little slow, with a very light, mixed test at the major direct markets. However, while the National Direct market was weak, the Western Cornbelt and Iowa/Southern Minnesota markets closed firm, so packers may need to bid up a little, at least to start out the week. Processing margins are poor and wholesale demand continues to be a question mark, so bids may get lower as the week goes on, even if market ready numbers are tightening along seasonal lines.

The National Direct market was $.08 lower at $70 to $80 for a weighted average of $77.10, the Western Cornbelt was $.63 higher at $72 to $80 with an average of $78.79, and Iowa/Southern Minnesota was up $.51 at $73 to $80 for an average of $79.23. The Eastern Cornbelt was not reported due to confidentiality. Butcher hogs at the Midwest cash markets were steady to a dollar lower at $53 to $58. The Missouri Direct base carcass meat price was steady to $1 lower at $72 to $74 on light to moderate supply and demand. Missouri sows were steady at $20 to $30.

The pork carcass cutout value was $1.09 higher at $86.67. Picnics and ribs were lower, all other primals were higher. The estimated slaughter of 431,000 head was up 5,000 on the week and 12,000 on the year.