Cattle futures pressured by higher corn
At the Chicago Mercantile Exchange, live and feeder cattle ended the day lower, watching corn and waiting for direct markets to develop. August live cattle closed $.47 lower at $119.77 and October live cattle closed $.40 lower at $124.70. August feeder cattle closed $1.85 lower at $155.52 and September feeder cattle closed $1.27 lower at $157.77.
Another quiet day for direct cash cattle trade activity. Bids have yet to surface. Asking prices were at $120 plus live in the South, while the North was quiet. It’s likely significant trade volume will be delayed until Wednesday or later.
At the Callaway Livestock Center in Missouri, compared to last week, steer calves under 550 pounds were steady to firm, with 450-to-500-pound steers $2 to $4 higher. Steers 550 to 700 pounds were steady to $4 lower compared to last week’s very active market. Steers 700 to 750 pounds were steady. Feeder heifers under 600 pounds were steady to firm and heifers over 600 pounds were lightly tested. The USDA says the market was still very active on steers 550 to 700 pounds, but didn’t hit last week’s highs. Receipts were down on the week and up on the year. Feeder supply included 67% steers and 52% of the market was over 600 pounds. Medium and Large 1 feeder steers 601 to 629 pounds brought $171.75 to $178.50 and feeder steers 820 to 835 pounds brought $150.50 to $152. Medium and Large 1 feeder heifers 505 to 546 pounds brought $156 to $165.75 and feeder heifers 563 to 574 pounds brought $152 to $158.50.
Boxed beef closed lower on light demand for moderate offerings. Choice closed $1.61 lower at $264.88 and Select closed $.91 lower at $249.51. The Choice/Select spread is $16.30. Estimated cattle slaughter 120,000 – down 1,000 on the week and up 3,000 on the year. Monday’s cattle slaughter was revised to 115,000 head.
Lean hog futures ended the day higher, supported by the discount to cash index and long-term demand expectations. August lean hogs closed $.52 higher at $105 and October lean hogs closed $1.65 higher at $91.02.
Cash hogs closed sharply higher with a big negotiated run. Packers bid up to move their desired numbers on Tuesday. Processors continue to monitor the availability of market-ready barrows and gilts. There has been strong demand on the global market and domestically for US pork and that continues to provide price support. The industry doesn’t expect that to end anytime soon. However, should a disruption occur, prices would likely tumble. Barrows and gilts at the National Daily Direct closed $3.60 higher with a base range of $105 to $117.34 and weighted average of $109.84; the Iowa/Minnesota had a weighted average of $111.92; the Western Corn Belt closed with a weighted average of $110.92; the Eastern Corn Belt had a weighted average of $107.69.
Butcher hog prices at the Midwest cash markets are steady at $75. At Illinois, slaughter sow prices were steady with good demand for heavy offerings at $59 to $70. Barrow and gilt prices were $1 lower with moderate to good demand for heavy offerings at $71 to $76. Boars ranged from $45 to $50 and $10 to $12.
Pork values closed lower – down $1.51 at $120.34. Butts and hams were both sharply lower. Loins and bellies were lower. Ribs and picnics were sharply higher. Estimated hog slaughter 474,000 head – up 10,000 on the week and even on the year.