Market News

Cattle futures up ahead of direct cash trade

Chicago Mercantile Exchange live cattle futures were higher on short covering and contracts’ discount to recent cash business. As much as anything, Tuesday’s gains seemed like a return of buying interest combined with a lack of any real new selling interest ahead of this week’s widespread direct trade. August was up $1.05 at $114.87 and October was $1.40 higher at $114.82.

Feeder cattle were higher on short covering, the discount to cash, and a return of buying interest. August was up $2.57 at $147.25 and September was $2.50 higher at $147.17.

Direct cash cattle markets were at a standstill and will likely stay that way until at least Wednesday, after the Fed Cattle Exchange activity. This week’s showlist is generally smaller than last week, except for Texas. Buyers will also be keeping an eye on futures and wholesale business. Asking prices are expected to be around $120 to $122 on the live basis in the South and $190 to $192 on the dressed basis in the North. Packer inquiry was pretty much nonexistent.

Boxed beef closed sharply lower on light demand and moderate offerings. Choice was down $2.30 at $215.24 and Select was $2.16 lower at $200.51. The estimated cattle slaughter of 120,000 head had no comparison to last week and was up 5,000 from last year.

At the Kingdom City-Callaway Livestock Center in Missouri Tuesday, feeder steer calves weighing less than 550 pounds were lightly tested, while 550 to 750 pounders were steady to $4 higher. Feeder heifers weighing 400 to 750 pounds were steady to $3 higher. The USDA says demand was good for a moderate supply. Mostly of the feeders weighed between 550 and 750 pounds and 53% of the run were heifers. 550 to 600 pound feeder steers sold at $169 to $179 and 600 to 650 pound steers were reported at $161 to $174.50. 500 to 600 pound feeder heifers ranged from $141.75 to $152 and 600 to 700 pound heifers sold at $141.75 to $152, including a pot load weighing 711 pounds at $145.75.

Lean hog futures were mixed, with nearbys up on the discount to cash, good near term demand expectations, and spread trade. Deferred months were down on longer term demand uncertainties connected to an expected increase in market ready numbers, along with that spread activity. July was up $.67 at $92.15 and August was $.25 higher at $82.25. The remaining months were lower.

Cash hogs were steady to firm. Near term, market ready numbers remain tight, but it looks like so far this week, some buyers have been able to move the needed numbers without spending a whole lot more and expansion is expected to get under way within the next few weeks, either late this month or in early August. This week’s slaughter is expected to fall just short of 2.2 million head.

Iowa/Southern Minnesota direct barrows and gilts closed $.07 higher at $82 to $88.50 for a weighted average of $87.72, the Western Cornbelt was up $.11 at $82 to $88.50 with an average of $87.72, and national direct business was $.36 higher at $82 to $88.50 for an average of $86.87. Butcher hogs at the Midwest cash markets were steady at $57 to $65. Missouri direct butchers were steady at $81 on light to moderate supply and demand. Sows were steady at $40 to $57. Illinois direct sows were $1 higher at $54 to $66 on very good demand for heavy offerings. Barrows and gilts were $1 higher at $57 to $63 with good demand for heavy offerings. Illinois boars ranged from $10 to $45.

Pork closed $.33 higher at $105.26. Loins and hams were higher, the other primals were weak to lower. The estimated hog slaughter of 435,000 head, had no comparison to a week ago and was up 8,000 from a year ago.

Add Comment

Your email address will not be published.


 

Stay Up to Date

Subscribe for our newsletter today and receive relevant news straight to your inbox!