Cattle futures higher ahead of widespread cash trade
July 28, 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 futures ended the day higher ahead
of widespread direct cash business.
Feeder cattle were supported by the day’s lower move in corn. August live cattle closed $.47 higher at
$100.90 and October live cattle closed $1.17 higher at $105. August feeder cattle closed $1.35 higher at
$140.70 and September feeder cattle closed $1.67 higher at $141.30.
A light direct cash cattle trade developed in parts of Kansas on Tuesday. Deals were marked at $97 to $97.50. That’s $1 to nearly $2 higher than last week’s weighted averages. Bids in other parts of the South were at $95. Asking prices on Tuesday were around $100 live in the South and $162 dressed in the North. Look for business to pick up as the week progresses. The Fed Cattle Exchange has an offering of 1,507 head.
At the Callaway Livestock Center in
Missouri, compared to last week light weight steer calves under 450 pounds and
700 to 750-pound steers sold with a higher undertone on a few comparisons. Steers 450 to 500 pounds and 650 to 700
pounds were $5 to $6 higher. Feeder
heifers under 500 pounds sold with a firm undertone on a light test and feeder
heifers 550 to 600 pounds were $5 to $7 higher.
The USDA says demand was good on a moderate supply. It was a good quality offering of steers 400
to 750 pounds and heifers 500 to 600 pounds and all sold on an active
market. Receipts were up on the week and
nearly steady on the year. Feeder supply
included 63 percent steers and 55 percent of the offering was over 600
pounds. Medium and Large 1 feeder steers
603 to 637 pounds brought $154 to $160.50 and feeder steers 703 to 749 pounds
brought $140 to $149.50. Medium and Large
1 feeder heifers 505 to 545 pounds brought $143 to $152.50 and feeder heifers
717 pounds brought $140.50.
Boxed beef closed mixed with light demand for moderate offerings. Choice closed $.41 higher at $202.96 and Select closed $1.81 lower at $188.32. The Choice/Select spread is $14.64. Estimated cattle slaughter is 119,000 head – up 1,000 on the week and even on the year.
Lean hog futures ended
the day mostly higher on spread trade with support from the day’s sharply
higher wholesale values during the session.
August lean hogs closed $.35 lower at $54.20 and October lean hogs
closed $.02 lower at $50.72.
Cash hogs closed steady to lower with large negotiated purchases. Demand uncertainties, both globally and domestically are driving the market. Especially as the availability of market-ready barrows and gilts is ample. Processors are pushing daily slaughter totals higher, adding more pork to the market. While they are able to keep the supply chain moving, they’re just scratching the surface of the backlog of hogs in the production system. Barrows and gilts at the National Daily Direct closed $.02 lower with a base range of $32 to $44 for a weighted average of $42.61; the Iowa/Minnesota closed $1.05 lower for a weighted average of $42.81; the Western Corn Belt closed $.88 lower for a weighted average of $42.57. The Eastern Corn Belt was not reported due to confidentiality.
Butcher hog prices at the Midwest cash markets are steady at $24. At Illinois, slaughter sow prices were weak with moderate demand for heavy offerings at $10 to $22. Barrow and gilt prices were $2 higher with good demand for moderate to heavy offerings at $19 to $28. Boars ranged from $1 to $3.
Pork values closed lower – down $1.89 at $69.41. Bellies, hams, and loins were all lower. Butts were weak. Ribs and picnics closed higher. Estimated hog slaughter is 475,000 head – up 2,000 on the week and up 7,000 on the year. Monday’s hog slaughter has been revised to 455,000 head.
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