Market News

Light direct cash cattle trade Thursday

Chicago Mercantile Exchange live and feeder cattle were sharply higher following Wednesday’s strength in direct cash business. Feeders had additional support from the lower move in corn. June live was up $2.80 at $163.10 and August was $2.32 higher at $162.30. May feeders were $3.30 higher at $205.40 and August was up $3.37 at $222.60.

There was some light direct cash cattle business in Kansas and Nebraska on Thursday. Asking prices for cattle left on showlists were around $172 plus in the South, and $278 plus in the North. So far this week, Southern live deals have been marked at $168 to mostly $170, compared to last week’s weighted averages, that is $4 higher in Texas and $3 higher in Kansas. Northern dressed business has had a range of $274 to $284, mostly $275 to $277, roughly $4.50 to $6.50 higher while live transactions ranged from $172 to $177, mostly $175, $5 higher than last week’s weighted averages basis Nebraska.

At the Mitchell Livestock Auction in South Dakota, demand was good on a steady offering. USDA says that compared to last week, feeder steers 900 to 1150 pounds sold $5 to $9 higher. Feeder heifers 700 to 900 pounds sold $6 to $13 higher. There was also a consignment of 300 head of certified Red Angus steers that brought top dollar. There were few load lots in the offering. Feeder supply included 50% steers and 98% of the offering was over 600 pounds.

Boxed beef closed mixed. Choice was $1.03 higher at $289.65 and Select was $1.53 lower at $276.63. The Choice/Select spread is $13.02.

Estimated cattle slaughter was 122,000 head – down 4,000 on the week and up 1,000 on the year.

Lean hog futures were mixed on spread trade, the steady to lower cash during the session, and the higher midday pork. Last week’s pork exports were a marketing year high, but there are questions about sustained demand. April was up $.75 at $74.15 and June was down $.20 at $88.17.

Cash hog business was steady to lower with a moderate closing negotiated run at the major direct markets. Buyers have been able to move the needed ready numbers this week at lower prices, with little or no resistance, but weren’t all that aggressive ahead of the holiday weekend even with an anticipated smaller slaughter Friday. Pork exports were a marketing high at 53,200 tons, mainly to China and Mexico.

Barrows and gilts at the National Daily Direct closed $.72 lower with a base range of $65 to $74 and weighted average of $70.86; the Iowa/Minnesota was $.48 lower with a weighted average of $71.62; the Western Corn Belt was $.32 lower with a weighted average of $71.42; and the Eastern Corn Belt was not reported due to confidentiality.

No price trends for butcher hogs with the Dorchester, Wisconsin and Garnavillo, Iowa cash markets closed this week.

At Illinois, slaughter sow prices were $2 lower with moderate demand for moderate offerings at $34 to $46. Barrows and gilts were steady with moderate demand for moderate offerings at $43 to $55. Boars were $15 to $25 and $8 to $15.

Pork values closed higher on Thursday – up $2.12 at $78.68. Bellies were sharply higher. Hams, picnics, and loins were higher. Ribs and butts were lower. Estimated hog slaughter was 481,000 head – up 3,000 on the week and up 12,000 on the year.