Market News

Direct cash cattle business mostly steady

Chicago Mercantile Exchange live cattle futures were higher ahead of the USDA’s monthly cattle on feed and bi-annual cattle inventory numbers. The numbers indicate continued expansion, but a number of contracts are at a discount to the recent cash business. August was up $.55 at $116.42 and October was $.32 higher at $117.40.

Feeder cattle were higher on the lower corn and position squaring ahead of those USDA reports. August was $.67 higher at $152.95 and September was up $.82 at $153.15.

Direct cash cattle business by Friday afternoon was moderate in most of the major feeding areas. Live sales in the South were at $120, just about steady with the previous week, while Nebraska ranged from $119 to $120.50, roughly $1 higher at the top end of the range. Dressed business in the North was $190, basically unchanged.

Boxed beef closed lower on light to moderate demand and heavy offerings. Choice was down $.74 at $206.91 and Select was $.78 lower at $194.80. The estimated cattle slaughter of 115,000 head was unchanged on the week and up 3,000 on the year.

Feeder cattle in Missouri this week were steady to $5 higher. The USDA says the supply was light because of the high temperatures, while demand was light to moderate overall, best for yearlings. Medium and Large 1 feeder steers weighing 600 to 700 pounds brought $146 to $180 and 800 to 885 pound steers ranged from $140 to $163.75. Medium and Large 1 feeder heifers weighing 500 to 600 pounds were reported at $130 to $165 and 600 to 700 pound heifers sold at $127 to $163.25.

In Missouri, hay movement was light, with steady prices on light demand for a moderate supply. Supreme quality alfalfa sold at $170 to $220 with premium at $150 to $180 and good quality at $120 to $160. Good quality mixed grass hay ranged from $75 to $100 and fair to good quality at $50 to $80. For Nebraska, compared to last week, round bales of alfalfa were steady to $10 higher and squares were $10 to $15 higher. Ground and delivered hay was steady and ground and delivered cornstalks were $5 higher. Dehydrated pellets were steady. The USDA says buyer inquiry was up this week because of the very dry or drought conditions in parts of the Plains. In east/central Nebraska, premium large square bales of alfalfa brought $180 with good large squares at $150 and fair large squares at $110. Fair quality large square bales of old crop sold at $90. 17% protein dehydrated alfalfa pellets ranged from $185 to $205. In the Platte Valley, good round bales of alfalfa were reported at $80 to $85, with ground and delivered alfalfa at $100 to $110 and 17% protein dehydrated pellets at $185.

Lean hogs futures were steady to lower on the steady to lower cash, spread trade, and the lower midday pork. August held at $81.10 and October was down $.62 at $67.22.

Cash hogs were steady to lower. Buyers have successfully lowered prices this week, improving their processing margins, while moving the needed numbers. Saturday’s slaughter is expected to be 49,000 head, which would put the weekly kill over 2.2 million head. The USDA reported pork and red meat production during June were new all-time highs for the month, with cold storage numbers out Monday afternoon.

Iowa/Southern Minnesota direct barrows and gilts closed $1.25 lower at $78 to $84.50 for a weighted average of $83.60, the Western Cornbelt was down $1.29 at $78 to $84.50 with an average of $83.56, and national direct business was $.88 lower at $78 to $84.50 for an average of $83.33. Butcher hogs at the Midwest cash markets were steady to $2 lower at $56 to $60. Missouri direct butchers were steady at $80 to $81 on light demand for a moderate supply. Sows were steady at $48 to $64.

Pork closed $1.24 lower at $102.78. All primals were weak to sharply lower. The estimated hog slaughter of 426,000 head was up 19,000 on the week and 23,000 on the year.

The USDA says early weaned pigs were $2 to $3 lower and all feeder pigs were $1 lower. Demand was light to moderate for moderate offerings and 61% of receipts were formula prices. The composite formula range for early weaned pigs was $30.98 to $44 for a weighted average of $37.26 and the cash range was $16 to $30 with an average of $24.98. All early weaned pigs averaged $33.99. The cash range for feeder pigs was $44.50 to $56 for a weighted average of $52.51.

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