Cattle futures higher ahead of the week’s direct business
October 27, 2020 By Meghan Grebner Filed Under: Closing Futures / Livestock Briefs, Livestock, Livestock Markets, Livestock Markets, Market News, Market News
At the Chicago Mercantile Exchange, live and feeder cattle are higher ahead of the week’s direct business. October live cattle closed $.87 higher at $104.85 and December live cattle closed $.65 higher at $104.05. October feeder cattle closed $.60 higher at $134.30 and November feeder cattle closed $1.72 higher at $132.30.
It was another relatively quiet day for direct cash cattle trade activity. Bids and asking prices have yet to be established. There were a handful of deals reported in Texas at $105 live, but that’s not near enough to establish a trend. Showlists this week are about steady in Texas, higher in Kansas, and in Nebraska/Colorado. It’s likely significant trade volume will be delayed until Wednesday or later.
At the Callaway Livestock Center in Missouri, compared to last week, a light test of 500 to 600-pounds steer calves and 700 to 750-pounds steers, along with 400 to 650-pounds heifers were mostly $3 to $8 lower on comparable weights and quality. Steer calves weighing 600 to 650-pounds sold nearly steady. The USDA says demand on calves was moderate to light. Receipts were down on the week and the year. Feeder supply included 52 percent steers and 60 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers 606 to 615 pounds brought $139.75 to $141.50 and feeder steers 705 to 744 pounds brought $135 to $140. Medium and Large 1 feeder heifers 453 to 493 pounds brought $128 to $137 and feeder heifers 624 to 640 pounds brought $125 to $130.
Boxed beef closed mixed – lower on Choice and steady on Select with light to moderate demand for moderate to heavy offerings. Choice closed $1.13 lower at $206.70 and Select closed $.18 higher at $188.67. The Choice/Select spread is $18.03. Estimated cattle slaughter is 117,000 head – down 4,000 on the week and up 4,000 on the year. Monday’s cattle slaughter has ben revised to 115,000 head.
Lean hog futures closed mostly higher on spread adjustments and the mixed cash trade, with support from higher pork during the session. December lean hogs closed $.10 lower at $67.65 February lean hogs closed $.40 higher at $68.05.
Cash hogs closed higher to sharply higher with a large negotiated run. Packers bid up to move their desired numbers on Tuesday. The industry remains optimistic that demand strength will continue. That’s helping to keep prices supported at a time when there are concerns about the more than ample supplies of market-ready hogs. Processors continue to push daily slaughter totals higher, that’s helping to relieve some of the pressure on the supply chain that remains from those COVID-related slowdowns and shutdowns. While it’s keeping product moving, it’s also adding more pork to the market. Barrows and gilts at the National Daily Direct closed $2.05 higher with a base range of $56 to $64.25 for a weighted average of $62.56; the Iowa/Southern Minnesota closed $.87 higher with a weighted average of $63.42; the Western Corn Belt closed $.72 higher for a weighted average of $63.13. Prices at the Eastern Corn Belt were not reported due to confidentiality.
Butcher hog prices at the Midwest cash markets area steady at $38. At Illinois, slaughter sow prices were $1 higher with good demand for moderate to heavy offerings at $24 to $38. Barrow and gilt prices were firm with good demand for moderate to heavy offerings at $37 to $43. Boars ranged from $5 to $7.
Pork values closed sharply lower – down $3.03 at $88.83. Hams closed nearly $11 lower. Picnics and loins were lower to sharply lower. Bellies closed weak. Butts and ribs closed firm to sharply higher. Estimated hog slaughter is 492,000 head – up 4,000 on the week and even on the year. Monday’s hog slaughter has been revised to 487,000 head.
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