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Cattle futures start the week sharply higher, lean hogs mixed

At the Chicago Mercantile Exchange, Chicago Mercantile Exchange live and feeder cattle futures were sharply higher ahead of the week’s widespread direct business. Feeders had additional support from the modestly lower move in corn. December live was up $1.57 at $148.57 and February was $1.12 higher at $151.87. November feeders were $3.32 higher at $176.20 and January was up $2.45 at $176.72.

It was a quiet start to the week for direct cash cattle trade on Tuesday. There wasn’t a token bid reported.  Some early asking prices were around $146-plus in the South but wasn’t established in the North.  Business should pick up over the balance of the week.

At the Valentine Livestock Auction in Nebraska, compared to last week, 750 pound steers traded $5 lower and 750 to 800 pound heifers traded $4 to $8 lower.  The USDA says demand was moderate to good with some internet bidding. Drought continues to impact the entire state and a recent wildfire will limit grass and hay supplies heading into the winter.  Receipts were up on the week and  year.  Feeder supply was 45 percent steers and 99 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 715 to 724 pounds brought $185.50 to $188.50 and steers 905 pounds brought $174 to $188.25. Medium and Large 1 feeder heifers 655 to 684 pounds brought $179 to $185.50 and feeder heifers 764 to 795 pounds brought $174 to $184.75.

Boxed beef cutout values closed mixed with Choice $2.12 higher at $246.75.  Select was $.97 lower at $212.85.  The Choice/Select spread is $33.90. Estimated cattle slaughter is 128,000 head, unchanged on the week and up 8,000 on the year.

Lean hog futures were mixed, mostly modestly higher, on bear spreading. December was down $0.07 at $79.52 and February was up $0.05 at $81.05.

Cash hogs closed sharply higher.  Processors worked aggressively to meet their procurement efforts and bid up to move their desired numbers.  Demand for US pork on the global market has been strong, helping provide price support. Barrows and gilts at the National Daily Direct were $3.74 higher with a base range of $78 to $93 with a weighted average of $87.88; the Iowa/Minnesota closed $7.27 higher with a weighted average of $91.40; the Western Corn Belt closed $5.77 higher with a weighted average of $90.98; the Eastern Corn Belt did not report due to confidentiality reasons.

Butcher hogs are steady at $60. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings from $58 to $70.  Barrows and gilts prices were steady with moderate demand for moderate offerings from $58 to $68.  Boars range from $39 to $41 and $9 to $19.

Pork values closed higher, up $1.76 at $103.15.  Butts were lower with loins, picnics, ribs, hams and bellies all higher.

Estimated hog slaughter is 489,000 up 2,00o on the week and 7,000 on the year.

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