Cattle futures supported by higher cash business
At the Chicago Mercantile Exchange, live and feeder cattle ended the day higher, supported by stronger cash trade. October live cattle closed $1.30 higher at $144.47 and December live cattle closed $1.05 higher at $150.70. September feeder cattle closed $2.50 higher at $185 and October feeders closed $1.60 higher at $187.17.
There was a light to moderate round of direct cash cattle business that took place on Wednesday. Deals in the North were at $228 to $229 dressed, about $1 to $2 higher than last week’s weighted average basis in Nebraska. Some live deals in the North were reported at $145 to $146. There were also a handful of live deals reported in the South at $139. Look for more business to develop over the balance of the week.
At the Interstate Regional Stockyards in Missouri, compared to last week, feeder steers and heifers were steady to $5 higher. The USDA says demand was good and supply was moderate. Receipts were up on the week and the year. Feeder supply included 46% steers and 38% of the offering was over 600 pounds. Medium and Large 1 feeder steers 608 to 634 pounds brought $189 to $198 and feeder steers 715 pounds brought $185. Medium and Large 1 feeder heifers 550 to 568 pounds brought $170 to $180 and feeder heifers 606 to 649 pounds brought $166 to $175.
Boxed beef closed lower on light demand for solid offerings. Choice closed $1.50 lower at $263.23 and Select closed $.62 lower at $237.08. The Choice/Select spread is $26.15. Estimated cattle slaughter 126,000 head – up 2,000 on the week and up 10,000 on the year.
Lean hog futures ended the day mostly higher, supported by the sharply higher cash business during the session. October lean hogs closed $1.25 higher at $100.85 and December lean hogs closed $.37 higher at $89.97.
Cash hogs closed higher with another huge negotiated run. Processors started the day aggressive in procurement efforts to move their desired numbers. The industry continues to monitor the availability of market-ready hogs. Demand for US pork on the global market has been strong, providing price support. Barrows and gilts at the National Daily Direct closed $1.35 higher with a base range of $115.00 to $138 and a weighted average of $132.48; the Iowa/Minnesota closed $1.18 higher with a weighted average of $134.87; the Western Corn Belt closed $1.47 higher with a weighted average of $135.17; the Eastern Corn Belt had not comparison but a weighted average of $127.99.
Butcher hog prices at the Midwest cash markets are steady at $75. At Illinois, slaughter sow prices were $3 higher with good demand for heavy offerings at $71 to $83. Barrows and gilts were steady with moderate demand for moderate offerings at $77 to $86. Boars ranged from $45 to $55 and $10 to $20.
Pork values were weak – down $.18 at $123.67. Ribs and butts were sharply lower. Hams and bellies were lower. Loins and picnics were higher. Estimated hog slaughter is 474,000 head – up 5,000 on the week and even on the year.