Market News

Cattle futures up, cash trade down

Chicago Mercantile Exchange live cattle futures were higher on short covering and an oversold bounce. The cash and wholesale fundamentals were not exactly friendly, but didn’t appear to be a factor. August was up $1.40 at $114.95 and October was $1.05 higher at $113.87.

Feeder cattle futures were higher on short covering, technical buying, and the weak corn. August was $2.40 higher at $144.62 and September was up $2.05 at $144.77.

Light to moderate direct cash cattle business did develop by Thursday afternoon, with volume expected to increase through the end of the day. Live business in the South ranged from $117 to $118, mostly at $118, which would be about $2 lower than last week. Dressed trade in the North was at $188, generally $2 lower, with a few live sales in parts of Nebraska at $118 to $119, steady to $1 lower.

Boxed beef closed lower on light to moderate demand for heavy offerings. Choice was down $2.53 at $220.05 and Select was $1.56 lower at $203.76. The estimated cattle slaughter of 120,000 head was up 3,000 on the week and 8,000 on the year.

At the Green City Livestock Auction in Missouri, compared to the previous test in early June, feeder steers were steady to $4 lower, except for a large supply of yearlings weighing more than 850 pounds, which were steady to $5 higher. Heifers of all weights were steady to $3 higher, with some spot loads selling as much as $5 to $7 higher. The USDA says market was active because of annual customer appreciation barbecue. Demand was good with a heavy supply and the quality was active. 65% of the supply were feeder steers and 77% of the offering weighed more than 600 pounds. 840 to 899 pound feeder steers sold at $152.25 to $159.25 and 900 to 970 pounders brought $146.50 to $153.25. 500 to 600 pound feeder heifers were reported at $150.50 to $166.25 and 700 to 730 pound heifers ranged from $144.25 to $151.25.

Lean hog futures were lower on profit taking and the lower, but lightly traded, open at the national direct market. July was down $.57 at $91.47 and August was $1.92 lower at $82.65.

Cash hogs were mostly steady to firm. Buyers eventually did bid up to get the needed numbers, but, seasonally, supplies are due to start expanding in the next few weeks. Pork demand continues to be good and heat in some key production areas has limited weight gains, but an increase in market ready numbers and the corresponding increase in pork supplies would blunt some of that demand impact. Also, there’s pretty high availability of most types of pork primals.

Iowa/Southern Minnesota direct barrows and gilts closed $.30 higher at $84.25 to $89.50 for a weighted average of $88.12, the Western Cornbelt was up $.28 at $84.25 to $89.50 with an average of $88.03, and national direct business was $.30 lower at $83 to $89.50 for an average of $86.68. Butcher hogs at the Midwest cash markets were steady at $57 to $60. Missouri direct butchers were steady to $3 higher at $81 to $82 on light to moderate supply and demand. Sows were steady at $40 to $47. Illinois direct sows were $2 higher at $49 to $63 with very good demand for heavy offerings. Barrows and gilts were steady at $57 to $62 with good demand for moderate offerings. Illinois boars ranged from $10 to $40.

Pork closed $.57 lower at $103.84. All primals were weak to sharply lower. The estimated hog slaughter was 438,000 head, 4,000 less than last week, but 7,000 more than last year.