Market News

Boxed beef, pork close lower

Chicago Mercantile Exchange live cattle futures were sharply lower on long liquidation, as the trade gets ready for widespread direct business and Friday’s USDA reports. The recent drop in wholesale prices has led to an increase in up-front boxed beef sales. August was $1.87 lower at $115.07 and October was down $1.75 at $116.87.

Feeder cattle futures were sharply lower on the firm corn and long liquidation ahead of widespread direct business and those USDA numbers. August was down $2.82 at $151.60 and September was $2.72 lower at $151.65.

Direct cash cattle markets are mostly very quiet. Business should remain at a near standstill, with light inquiry and poorly defined asking prices. What asking prices are being reported are around $122+ on the live basis in the South and $192+ on the dressed basis in the North. DTN did report some very light business at $117 on the live basis and $187 to $189 dressed. Widespread trade will likely wait until at least after Wednesday’s Fed Cattle Exchange activity. Monthly USDA livestock slaughter numbers are out Thursday, with cattle on feed and inventory numbers out Friday.

Boxed beef closed lower on light to moderate demand and moderate to heavy offerings. Choice was down $1.00 at $208.05 and Select was $.56 lower at $195.25. The estimated cattle slaughter of 120,000 head was steady with last week and up 7,000 from last year.

The Amarillo Livestock Auction in Texas, with a limited comparison, feeder steers and heifers were $4 to $6 higher. The USDA says trade was moderately active for good demand. 58% of the feeders were steers and bulls and 81% of the week’s total offering weighed more than 600 pounds. Medium and Large 1 800 to 900 pound feeder steers sold at $145 to $152 and a load averaging 956 pounds brought $140.75. Medium and Large 1-2 700 to 800 pound heifers ranged from $133.50 to $134.50 and Medium and Large 2 heifers were reported at $127 to $129.50. Medium and Large 1-2 cow/calf pairs came out at $1,150 per pair.

Lean hog futures were narrowly mixed on the mixed cash, spillover from cattle, and demand uncertainties. With July off the board, all contracts are carrying a discount to the cash index. Pork demand is good, but there’s plenty on the market. The USDA’s monthly livestock slaughter numbers are out on the 20th and the cold storage report is due on the 24th. August was $.27 lower at $80.50 and October was down $.17 at $67.87.

Cash hogs were mostly steady to lower. The market’s watching for the expansion of market ready numbers and a seasonal top in the wholesale market. Hog weights are seeing an impact from weather.

Iowa/Southern Minnesota direct barrows and gilts closed $.51 lower at $85 to $86.50 for a weighted average of $85.90, the Western Cornbelt was down $.45 at $81 to $86.50 with an average of $85.87, and national direct business was $.21 lower at $81 to $86.50 for an average of $85.58. The Eastern Cornbelt had no reported comparison with a range of $84.13 to $86 and a weighted average of $84.81. Butcher hogs at the Midwest cash markets were steady to $2 lower at $57 to $62. Missouri direct butchers were steady to $1 higher at $81 to $82 on light to moderate supply and demand. Sows were steady to $3 higher at $48 to $62. Illinois direct sows were weak at $60 to $68 with good demand for moderate to heavy offerings. Barrows and gilts were weak at $57 to $65 on good demand for moderate to heavy offerings. Boars ranged from $10 to $41.

Pork closed $.20 lower at $103.99. Picnics were higher and hams were firm, while all the other primals were weak to lower. The estimated hog slaughter was 441,000 head, up 6,000 on the week and 10,000 on the year.