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Live cattle mixed ahead of widespread direct trade

Chicago Mercantile Exchange live cattle futures were mixed ahead of widespread direct business, while feeders were up on the lower move in corn. October live was down $.45 at $144.35 and December was $.40 lower at $150.05. September feeders were up $.52 at $179.97 and October was $.90 higher at $181.42.

Direct cash cattle trade was limited, with no established trend and most of the major feeding areas remaining quiet. A few dressed sales in Nebraska were reported at $226 to $227, with even lighter live trade in the north at $143. Asking prices were around $144 to $145 live and $230+ dressed, with bids of $141 live and $224 to $227 dressed. Many packers are short bought, even after moving some supplies forward last week. The uncertainties about a potential railroad strike are also contributing to some of the cautious cash livestock business. This week at the Fed Cattle Exchange, 1,728 head were on offer, with zero sales.

Boxed beef closed sharply lower with heavy movement. Choice was down $3.19 at $253.47 and Select beef was $3.47 lower at $230.11. The estimated cattle slaughter of 126,000 head was down 2,000 on the week, but up 7,000 on the year.

At the OKC West Livestock Auction in Oklahoma, compared to the previous week, steer and heifer calves were mostly $6 to $8 lower, while feeder steers and heifers were fully down $6 to $8. The USDA says demand was light for fresh calves and moderate for long weaned cattle, with receipts up on the week and the year. 58% of the offering were feeder steers and 53% of the total run weighed more than 600 pounds. Medium and Large 1 feeder steers weighing 600 to 700 pounds were reported at $168 to $190 and 700-to-800-pound steers sold $165 to $181. Medium and Large 1 feeder heifers weighing 400 to 500 pounds ranged from $169 to $187 and 600 to 700-pound heifers brought $160 to $184.

Lean hog futures were mostly lower on spread trade and long-term demand uncertainties. October was $1.05 lower at $94.70 and December was down $.40 at $85.30.

Cash hogs were mixed with strong closing negotiated numbers at the major direct markets. Buyers were split on bidding up to move the needed near-term numbers and cutting back on spending to save some money. The wholesale trend has been inconsistent recently, leaving packers wary of their margins, and there are uncertainties about domestic movement and export demand. Iowa/Southern Minnesota direct barrows and gilts last week averaged 280 pounds per head, a gain of 2.3 from the previous week, but a loss of 2.1 from a year ago.

National direct barrows and gilts closed $1.15 lower with a base price range of $86 to $102.50 and a weighted average of $98.26, while Iowa/Southern Minnesota was $1.32 higher at $100.19 and the Western Corn Belt up $1.34 at $100.01. The Eastern Corn Belt had no recent comparison with a weighted average of $96.76.

Butcher hogs at the Midwest cash markets were steady at $70. Illinois direct sows were steady at $58 to $70 on light to moderate demand and offerings. Barrows and gilts were $1 lower at $67 to $76 with moderate demand for moderate offerings. Boars ranged from $9 to $41.

Pork closed $2.11 higher at $106.88. The primal cuts were all firm to sharply higher, including a $6.02 gain in bellies. The estimated hog slaughter of 484,000 head was up 1,000 on the week and 12,000 on the year.

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