Market News

Cattle mostly higher, despite unfriendly cash, wholesale trade

Chicago Mercantile Exchange live cattle futures were steady to higher on spread trade and technical buying. It was another mixed session, finished by a rally, without a whole lot of actual fundamental support. Labor Day demand is expected to be good, but boxed beef has been struggling and increased ready numbers will put more product on the wholesale market. August was unchanged at $114.30 and October was up $.20 at $113.57.

Feeder cattle were higher on technical buying ahead of widespread direct trade this week. August was $1.35 higher at $147.82 and September was up $1.87 at $148.95.

Direct cash cattle markets are mostly quiet, getting ready for the bulk of this week’s business. Scattered, light business was reported, mostly steady with Wednesday’s trade. Moderate trade was reported in Nebraska Wednesday, mainly at $117 live and $188 dressed, with much lighter activity in Kansas at $117. Most of the other major feeding areas remained quiet, so more activity is expected to develop over the next couple of days. Asking prices are firm at $120 on the live basis in the South and $192 dressed in the North. Bids are reported at $117 to $118 live and $187 to $188 dressed.

Boxed beef closed lower on light to moderate demand for heavy offerings. Choice was down $.64 at $206.43 and Select was $1.21 lower at $196.66. The estimated cattle slaughter of 118,000 head was up 3,000 on the week and 7,000 on the year.

At the Huss Platte Valley Auction feeder sale in Nebraska, compared to the last event two weeks ago, 900 to 950 pound steers were steady and 850 to 900 pound heifers were steady to $5 higher. The USDA says market activity was moderate with moderate to good demand. Steers made up 53% of the feeder offering and almost 97% of the run weighed more than 600 pounds. Fleshy Medium and Large 1 feeder steers weighing 800 to 890 pounds sold at $143 to $148.75 and 700 head of 910 to 940 pound steers ranged from $148.50 to $152. Medium and Large 1 700 to 775 pound feeder heifers brought $145 to $153.10, with 95 head of fleshy heifers averaging 733 pounds at $144.50 to 146, and 800 to 880 pound heifers were reported at $137 to $147.

Lean hog futures were narrowly mixed. On the bull side of the equation, contracts are at a pretty significant discount to cash and after a couple of days of weak bids, it looks like packers may at least temporarily have to increase bids to move the needed numbers. On the bear side, the seasonal expansion of market ready numbers is imminent and wholesale trade may have topped out for now. August was up $.25 at $82.25 and October was $.02 higher at $67.67, while the other months were weak.

Cash hogs closed mostly steady to modestly higher. Buyers continue to monitor processing margins, the availability of market ready numbers, and wholesale business. The seasonal expansion of market ready numbers is expected to really get underway in the near future and pork trade could be close to a seasonal top. Also, the expected expansion of those market ready numbers would put even more pork on the market. Supplies are ample, but good demand and lighter carcass weights have limited some of that impact.

Iowa/Southern Minnesota direct barrows and gilts were $.43 higher at $76 to $85 for a weighted average of $82.98, the Western Cornbelt was $.44 higher at $76 to $85 with an average of $82.93, and national direct business was $.36 higher at $76 to $85 for an average of $82.11. The Eastern Cornbelt had no recent comparison with a range of $80.28 to $82 and a weighted average of $81.05. Butcher hogs at the Midwest cash markets were steady at $54 to $66. Missouri direct butchers were steady at $77 to $78 on light to moderate supply and demand. Sows were steady at $54 to $58. Illinois direct sows were firm at $62 to $72 on very good demand for moderate to heavy offerings. Barrows and gilts were $1 lower at $53 to $58 with light to moderate demand for moderate offerings. Boars ranged from $10 to $38.

Pork closed $.64 lower at $99.94. Loins and bellies were firm, the other primals were weak to lower. The estimated hog slaughter of 443,000 head was 4,000 more than last week and 27,000 above last year.