Market News

Cattle futures mostly higher ahead of week’s direct trade

Chicago Mercantile Exchange live cattle futures were mostly higher on spread trade, getting ready for the week’s widespread direct cash cattle business. August was down $.07 at $106.37 and October was up $.02 at $110.12.

Feeder cattle were mostly firm, following the lead of the live pit. August was $.22 lower at $152.57 and September was down $.02, also at $152.57. The other months were up modestly.

Direct cash cattle markets were quiet. After the break for July 4th, asking prices were renewed at $113 to $115 on the live basis and $176 to $178 dressed, with bids of $108 to $110 live and $170 dressed. There hasn’t been much business done this week and buyers are short bought, but widespread activity will apparently wait until Friday. The Fed Cattle Exchange was closed this week, with sales set to resume next Wednesday, July 11th.

Boxed beef closed lower on light to moderate demand and offerings. Choice lost $1.83 at $208.43 and Select was down $1.01 at $198.70. The estimated cattle slaughter of 120,000 head was unchanged on the week and up 2,000 on the year.

At the slaughter cattle auction in Oklahoma City Tuesday, compared to the previous test, cows were $3 to $4 lower and bulls were down $5 with light receipts. The USDA says packer demand was moderate. For the cows, average dress breakers brought $56.50 to $58, with high dress at $62 to $66.50, and boners ranged from $57 to $61, with high dress at $64. Lean slaughter cows sold at $55 to $59.50 and lights sold at $54 to $58. Average dress slaughter bulls were reported $80 to $83, with high dress at $85 to $86.

Lean hog futures were mostly lower on supply questions, demand uncertainties, and the lack of direction from the post-holiday cash market. Hogs also continue to monitor trade tensions. July was $.42 lower at $83.30 and August was $.05 higher at $76.05.

Cash hogs were steady to lower with light closing negotiated numbers for the major direct markets. Thursday’s movement may have been limited, at least somewhat, by hot temperatures in parts of the region and recent flooding. Coming back from the midweek break, buyers tried to reassert their leverage, with Saturday’s kill projected at around 150,000 head. That’s a little low for a holiday week, but probably constrained by packer margins. Both sides will continue to monitor pork demand, the impact of weather on hog weights, and the availability of market ready numbers.

Pork closed $.49 higher at $86.29. Loins, picnics, hams, and bellies were higher, while butts and ribs were sharply lower. The estimated hog slaughter of 461,000 head was up 11,000 on the week and 19,000 on the year.

Iowa/Southern Minnesota direct barrows and gilts were $1.17 lower at $74.97 to $78 with a weighted average of $77.90, the Western Cornbelt was down $.92 at $74.97 to $78 for an average of $77.90, and national direct business was $1.04 lower at $69 to $78 with an average of $76.71. Butcher hogs in Zumbrota, Minnesota were steady at $52. Dorchester, Wisconsin and Garnavillo, Iowa are closed. Illinois Direct sows were steady at $34 to $44 on moderate demand for moderate offerings. Barrows and gilts were steady at $44 to $54, also on moderate demand and offerings. Boars ranged from $8 to $32.