Market News

Cattle futures down on cash pressure

At the Chicago Mercantile Exchange, cattle futures were sharply lower across the board.  The disappointing cash trade and additional long liquidation pressured contracts.  The continued downward movement in live cattle could draw additional liquidation in all cattle markets.  August live cattle closed $2.35 lower at $107.12 and October live cattle closed down $2.10 at $106.22.  August feeder cattle closed down $1.77 at $140.47 and September feeder cattle closed $2.40 lower at $140.72.

Direct cash cattle trade was light in several areas with dressed trade at $8 to $10 lower than last week’s weighted average basis in Nebraska and steady to $4 lower than yesterday’s business.  Southern live deals are coming in $5 lower than a week ago.  Some asking prices are hanging around $115 in the South and $180 in the North with bids reported at $110 live and $175 to $178 dressed.

Estimated cattle slaughter is 117,000 down 1,000 on the week and up 3,000 on the year.

Boxed beef cutouts closed lower on light to moderate demand and heavy offerings.  Choice ended the $1.88 at $195.63 and select closed $.84 lower at $194.20.

At the Mitchell Livestock Auction in Sioux Falls, SD feeder steers and heifers sold with weak undertones compared to a light test last week.  The USDA called demand good to very good with a large offering of both steers and heifers out of backgrounding yards and off grass.  The best demand was for light-fleshed steers off grass.  The feeder cattle offering was more than 50 percent steers with 99 percent weighing over 600 pounds.  Medium and Large 1 steers 800 to 850 pounds brought $139.25 to $148.75 and Medium and large 1 steers 950 to 990 pounds brought $133.00 to $137.25.  Medium and Large 1 heifers 850 to 900 pounds brought $128.25 to $134.50 and Medium and large 1 heifers 950 to 1000 pounds brought $129.00 to $131.85.

Lean Hogs closed sharply lower on the steady to lower cash markets on concerns about pork demand and follow through selling from Wednesday.  October lean hogs were down $1.85 at $66.92 and December lean hogs closed down $1.67 at $61.80.

Cash hogs closed lower as the trade continues to watch the seasonal increase of market ready numbers.  That will add more pork to the market and raises concerns about how much more pork the trade could handle.  Barrows and gilts at the Iowa/Southern Minnesota are $1.22 lower with a range of $70 to $77 and a weighted average of $75.59; the Western Corn Belt is $1.25 lower with a range of $70 to $77 and an average of $75.66; trade at the Eastern Corn Belt was not reported due to confidentiality; and at the National Daily Direct, barrows and gilts are $.93 lower with a range of $70 to $77 and an average of $75.46.

Butcher hogs at the Midwest cash markets closed steady to $2 lower at $48 to $53.

Pork cutout ended the day up $.42 at $92.25 – led by the strong move up in the rib.

Estimated hog Slaughter is 447,000 unchanged from last week and 15,000 above last year.

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