Cattle futures higher following On Feed numbers
At the Chicago Mercantile Exchange, live and feeder cattle were higher following Friday’s On Feed report, feeders also found additional support from the day’s lower move in corn.
It was a quiet start to the week for direct cash cattle business. Bids and asking prices have yet to surface. The holiday-shortened week could impact how the cash cattle market reacts. It is a possibility significant trade could develop earlier than normal.
At Midsession at the Oklahoma National Stockyards, compared to last week, feeder steers were steady to $2 higher. Feeder heifers were mostly steady. The USDA says demand was moderate to good for feeder cattle. Steer and heifer calves were mostly $3 to $6 higher. Demand for lightweight grazing cattle was good. The USDA says quality was average to attractive with several nice feeders available. Receipts are down on the week and the year. Feeder supply included 57% steers and 44% of the offering was over 600 pounds. Medium and Large 1 feeder steers 550 to 599 pounds brought $169 to $193 and feeder steers 610 to 648 pounds brought $173 to $194. Medium and Large 1 feeder heifers 500 to 545 pounds brought $166 to $184 and feeder heifers 606 to 649 pounds brought $152 to $175.50.
Boxed beef closed higher on moderate demand for moderate offerings. Choice closed $.51 higher at $255.38 and Select closed $.79 higher at $233.62. The Choice/Select spread is $21.76. Estimated cattle slaughter was 128,000 head – even on the week and up 6,000 on the year.
Lean hog futures ended the day mostly higher, supported by mostly higher cash business during the session.
Cash hogs closed higher with a fairly light negotiated run. The industry has been in a pattern of a few days with lighter business at lower prices and a couple of days with big runs and sharply higher prices. That pattern could be thrown off this week because of the Thursday holiday. The industry is watching the availability of market-ready hogs and demand. There are concerns a slowing global economy could lessen demand and pressure prices. Barrows and gilts at the National Daily Direct closed $.35 higher with a base range of $80 to $90 with a weighted average of $82.16; the Iowa/Minnesota closed $.87 higher with a weighted average of $86.27; the Western Corn Belt closed $1.13 higher with a weighted average of $86. Prices at the Eastern Corn Belt were not reported due to confidentiality.
Midwest butcher hog markets are closed this week. At Illinois, slaughter sow prices were $2 lower with a light demand for light offerings at $52 to $64. Barrows and gilts were steady with moderate demand for moderate offerings at $58 to $68. Boars ranged from $30 to $35 and $9 to $19.
Pork values closed lower – down $1.45 at $91.99. Hams and picnics were sharply lower. Bellies, ribs, and butts were lower. Loins closed higher. Estimated hog slaughter was 488,000 head, up 3,000 on the week and up 8,000 on the year. Friday’s hog slaughter has been revised to 481,000 head.