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Cattle futures supported by higher cash trade

At the Chicago Mercantile Exchange, live cattle closed higher on support from the higher cash trade and the recent strength in wholesale values.  Feeder cattle were mostly higher on the same factors with additional support from the day’s weak move in corn.  December live cattle closed $.70 higher at $120.40 and February contracts closed $.52 higher at $125.67.  January feeders closed $.35 lower at $141.62 and March feeders closed $.12 lower at $142.22. 

A light direct cash cattle trade is underway.  Just a handful of deals have been reported in Iowa at $117 live, $1 higher than last week’s weighted averages.  A few dressed deals have also been reported at $184.  Asking prices are still sitting at $118 to $119 live in the South and $188 to $190 dressed in the North.  Business is underway early due to the shortened holiday week.  The Fed Cattle Exchange is off this week because of the holiday. 

At the Joplin Regional Stockyards in Missouri, compared to last week, steer and heifer calves were $3 to $5 lower, yearling steers were evenly steady, and yearling heifers were steady to $3 higher.  The USDA says demand was moderate to good with a heavy supply.  Receipts of 13,045 head were up on the week and the year.  Feeder supply included 69 percent steers and 79 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 700 to 747 pounds brought $138 to $154 and feeder steers 802 to 849 pounds brought $139.75 to $152.   Medium and Large 1 feeder heifers 710 to 749 pounds brought $132.50 to $145.25 and feeder heifers 803 to 835 pounds brought $134 to $138.50. 

Boxed beef closed mixed – lower on Choice and firm on Select – on light to moderate demand and offerings.  Choice closed $1.40 lower at $231.84 and Select closed $.38 higher at $212.29.  The Choice/Select spread closed at $19.55.   Estimated cattle slaughter is 110,000 head – down 8,000 on the week and down 10,000 on the year. 

Except the nearby contract, lean hog futures closed higher on strength in the cash trade and hopes that demand for US pork on the global market will see a significant increase.  December lean hogs closed $.20 lower at $60.82 and February lean hogs closed $.07 higher at $67.82. 

Cash hogs closed firm to higher with solid negotiated purchase numbers.  Packers bid up to move their desired numbers in this shortened holiday week.  The industry is still looking for significant demand increases for US pork on the global market.  If that is realized, there is a huge potential for prices to move steadily higher.  But, until then, the heavy supplies will limit the cash market’s ability to move higher for any prolonged period of time.  Barrows and gilts at the Iowa/Southern Minnesota closed $1.24 higher for a weighted average of $42.49; the Western Corn Belt closed $1.11 higher for an average of $42.47; the Eastern Corn Belt had no comparison but a weighted average of $42.55; and the National Daily Direct closed $.68 higher with a base range of $40 to $43 for a weighted average of $42.47. 

Butcher hog prices at the Midwest cash markets are steady at $33.  At Illinois, slaughter sow prices were steady at $23 to $34 with moderate demand for moderate offerings. Barrow and gilt prices were steady at $25 to $30 with moderate demand for moderate offerings.   

Pork values ended the day lower – down $1.75 at $82.26.  Picnics, loins, and ribs were all sharply lower.  Hams and butts were weak to lower.  Bellies closed higher.  Estimated hog slaughter is 495,000 head – up 1,000 on the week and up 24,000 on the year. 

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