Market News

Direct cattle business underway, lower than last week

Chicago Mercantile Exchange live cattle futures were higher on an oversold bounce. Cash and wholesale business during the session were bearish, but contacts were due for at least some kind of recovery, technically. August was up $1.12 at $114.30 and October was $.60 higher at $113.37.

Feeder cattle were mostly modestly higher on spread trade, the modestly higher corn, and oversold signals. Nearby contracts were weak, August was down $.05 at $146.47 and September was $.07 lower at $147.07, while the other months were firm.

Direct cash cattle business was underway by Wednesday afternoon. Live sales in the South were reported at $117, about $3 lower on the week, and dressed trade in the North was primarily at $188, down around $2 from last week’s weighted average for Nebraska. Scattered live sales in western Nebraska were at $117. Asking prices were $120 live and $192 dressed with bids at $117 live and $186 to $187 dressed. The USDA’s afternoon report at least implies more business needing to be done this week. Some extremely light trade was reported Tuesday afternoon in the North at $118 on the live basis and $188 dressed.

This week’s offering at the Fed Cattle Exchange was 2,119 head, 772 sold, with a weighted average of $117.68, down $.59 on the week. Sales of 403 head for 1 to 9 day delivery averaged $117.72, $.58 lower, and sales of 369 head for 1 to 17 day delivery averaged $117.63, down $.37. The next event is scheduled Wednesday, August 2nd.

Boxed beef closed lower on light to moderate demand and offerings. Choice was down $.55 at $207.07 and Select was $1.06 lower at $197.87. The estimated cattle slaughter of 119,000 head was 2,000 more than a week ago and 7% above a year ago.

At the Ozarks Regional Stockyards feeder cattle sale in Missouri, compared to last week, steer and heifer calves were steady to $4 higher and yearlings were unevenly steady in a good test. The USDA says demand was very good for a light supply lacking in quality. Half of the feeder supply were steers, 45% were heifers, and 57% of the total offering weighed more than 600 pounds. Medium and Large 1-2 feeder steers weighing 600 to 700 pounds ranged from $140 to $161 and 800 to 890 pound steers brought $135.50 to $140. Medium and Large 1-2 feeder heifers weighing 700 to 740 pounds were reported at $127 to $132.50 and 800 to 840 pound heifers sold at $122.50 to 130.25.

Lean hog futures were supported by contracts’ discount to cash and the higher midday pork, with bellies surging $12.58 at midday on Wednesday. Cash business during the session was steady to lower, but hogs shrugged that off pretty easily, also watching the contra-fundamental rally in live cattle. August was $.55 higher at $82.00 and October was up $.80 at $67.65.

Cash hogs were steady to lower. Buyers are continuing to watch for a seasonal increase in market ready numbers with this week’s slaughter expected to be about steady with last week at more than 2.2 million head. Business could firm up later this week if buyers are unable to move the needed numbers. The average Iowa/Southern Minnesota hog weight for the week ending July 22nd was 275.7 pounds, down 1.1 on the week and 1.6 on the year.

Iowa/Southern Minnesota direct barrows and gilts closed $.24 lower at $80.75 to $83 for a weighted average of $82.55, the Western Cornbelt was down $.23 at $77 to $83 with a weighted average of $82.49, and national direct business was $.32 lower at $77 to $83 for an average of $81.75. Butcher hogs at the Midwest cash markets were steady at $54 to $66. Missouri direct butcher trade was steady to $1 lower at $77 to $78 on light to moderate supply and demand. Sows were steady to $2 higher at $54 to $68. Illinois direct sows were firm at $61 to $72 on very good demand for heavy offerings. Barrows and gilts were weak at $54 to $59 with moderate demand for moderate offerings. Boars ranged from $10 to $38.

Pork closed $1.82 lower at $100.58. After the big midday gain, bellies only closed $.15 higher, while the other primals were weak to sharply lower, including a $5.69 drop in butts. The estimated hog slaughter of 443,000 head was up 2,000 on the week and 10,000 on the year.