Market News

Cattle futures lower ahead of week’s direct cash business

At the Chicago Mercantile Exchange, live and feeder cattle ended the day lower waiting for direct cash business to develop. There was additional pressure on feeder cattle from the day’s higher move in corn.  October live cattle closed $1.05 lower at $143.17 and December live cattle closed $.80 lower at $149.65.  September feeder cattle closed $3.15 lower at $182.50 and October feeder cattle closed $2.12 lower at $185.57. 

It was a quiet Tuesday for direct cash cattle business.  A few early asking prices were noted at $138 to $140 live in the South. There were a handful of deals reported in the North at $230 to $232 dressed, however, it wasn’t near enough to establish a trend.  Significant trade volume will likely be delayed until the latter part of the week. 

At the Tri-State Livestock Auction in Nebraska, compared to last week, steer calves were $9 to $12 lower and heifers were $5 to $10 higher.  The USDA says there weren’t enough feeder cattle on offer for an accurate test.  Demand was good on the entire offerings.  Receipts were down on the week.  Feeder supply included 49% steers and 12% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 413 to 446 pounds brought $230 to $243 and feeder steers 454 to 489 pounds brought $213 to $233.  Medium and Large 1 feeder heifers 360 to 395 pounds brought $218 to $238.50 and feeder heifers 451 to 475 pounds brought $201 to $220.

Boxed beef closed lower on light demand for solid offerings.  Choice closed $1.51 lower at $264.73 and Select closed $1.16 lower at $237.70.  The Choice/Select spread is $27.03. Estimated cattle slaughter 126,000 head – up 2,000 on the week and up 8,000 on the year. 

Lean hog futures ended the day mixed, adjusting spreads.  October lean hogs closed $.70 lower at $99.60 and December lean hogs closed $.12 lower at $89.60. 

Cash hogs closed sharply higher with a huge negotiated run.  Processors were extremely aggressive in their procurement efforts and bid up Tuesday afternoon to move their desired numbers.  Demand for US pork on the global market and domestically has been strong, helping provide price support.  The industry continues to monitor the availability of market-ready hogs. Barrows and gilts at the National Daily Direct closed $8.29 higher with a base range of $114 to $137 and a weighted average of $131.13; the Iowa/Minnesota closed $9.07 higher with a weighted average of $133.69; the Western Corn Belt closed $3.29 higher with a weighted average of $133.70.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $75. 

Pork values closed weak – down $.21 at $123.85.  Picnics and ribs were both sharply lower.  Butts and hams were lower.  Loins were firm and bellies were higher. Estimated hog slaughter is 474,000 head – up 2,000 on the week and up 3,000 on the year. 

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