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Cattle futures supported by boxed beef


Chicago Mercantile Exchange live cattle futures were higher, supported by technical buying, the higher midday boxed beef, and the generally smaller than a week ago showlist. June was up $.47 at $123.92 and August was $.97 higher at $122.02.

Feeder cattle futures were higher, following the lead of the live pit. May was $.90 higher at $144.25 and August was up $2.32 at $152.77.

Direct cash cattle markets were quiet. Contrary to early expectations, the overall ready numbers appear to be smaller than last week, except for Nebraska. DTN says last week’s formula totals were mixed, larger in Nebraska, smaller in Kansas, about steady in Texas, and trade volume total was also mixed, a lot bigger in Nebraska, a little larger in Texas, and smaller in Kansas. Asking prices are could start off around $136 to $138 on the live basis and $215 to $220 dressed. Widespread business is not expected until the second half of the week. Buyers will be watching margins and getting ready for a holiday shortened week next week.

Boxed beef closed higher on moderate to fairly to good demand and light to moderate offerings. Choice was up $.74 at $247.88 and Select was $1.41 higher at $222.83. The estimated cattle slaughter was 114,000 head, down 1,000 on the week, but up 5,000 on the year.

At Oklahoma City on Monday, feeder steers and heifers were $2 to $5 higher and steer and heifer calves were not well tested, except for heavier weight calves, which were $1 higher. Demand was good to very good for all classes with active trade. 56% of the supply is steers and 77% of the feeder cattle offering weighs more than 600 pounds. 600 to 700 pound steer calves ranged from $154.50 to $161 and 800 to 880 pound feeder steers brought $139 to $147.50. 600 to 700 pound feeder heifers were reported at $141 to $152 with 700 to 760 pounders at $136.50 to $144.

Lean hog futures were mixed on the steady to lower cash during the session, modestly higher midday pork, and position squaring ahead of the monthly cold storage report. June was down $.15 at $19.35 and July was $.12 lower at $80.05.

Cash hogs were steady to lower. Buyers started the week off assessing wholesale demand and the availability of market ready numbers. Even with the somewhat tighter supplies, the slaughter’s been running ahead of last year pretty consistently, so there’s plenty of pork available.

Iowa/Southern Minnesota direct barrows and gilts closed $.51 lower at $68 to $71.50 for a weighted average of $70.83, the Western Cornbelt was down $.45 at $66 to $71.50 with an average of $70.76, and national direct business was $.33 lower at $66 to $71.50 for an average of $70.51. Butcher hogs at the Midwest cash markets were steady at $47 to $52. Missouri direct butchers were steady at $63 to $66 on light to moderate supply and demand. Sows were steady at $38 to $50. Illinois direct sows were weak at $39 to $52 on moderate demand for heavy offerings. Barrows and gilts were steady at $46 to $52 on good demand for moderate offerings. Illinois boars ranged from $7 to $27.

Pork closed up $1.45 at $88.71. Picnics were lower, all other primals were higher. The estimated hog slaughter was 441,000 head, up 4,000 from last week and 8,000 from last year.

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