Market News

Live cattle mostly higher watching direct business

At the Chicago Mercantile Exchange, live cattle were mostly higher ahead of widespread direct cash business.  Feeders were pressured by the higher move in corn.  August live cattle closed $.10 higher $171.07 and October live cattle closed $.22 higher at $174.35.  August feeder cattle closed $1.77 lower at $234.12 and September feeders closed $1.60 lower at $237.52. 

There was another light round of direct cash cattle business reported on Thursday.  Deals in Nebraska were marked at $296 dressed, $4 below the previous week’s weighted average basis in Nebraska.  Bids were well below last week’s business and continue to be passed.  Look for more trade to develop before the end of the day Friday. 

At the Huss Livestock Market in Nebraska, steers over 650 pounds were $5 to $10 higher and heifers 500 to 750 pounds were $10 to $15 higher.  The USDA says demand was good from the buyers in the crowd.  Receipts were down from two weeks ago and on the year.  Feeder supply included 69% steers and 76% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 657 to 690 pounds brought $256.50 to $261 for an average price of $257.25 and fancy feeder steers 918 to 940 pounds brought $229.75 to $234.50 for an average price of $230.54.  Medium and Large 1 feeder heifers 603 to 645 pounds brought $244.75 to $250 for an average price of $245.47 and feeder heifers 663 to 689 pounds brought $228 to $242.50 for an average price of $236.42. 

Boxed beef closed higher on solid demand for moderate offerings.  Choice was $3.01 higher at $342.07 and Select closed $.32 higher at $309.58.  The Choice/Select spread is $32.49.  Estimated cattle slaughter was 126,000 head – up 1,000 on the week and down 1,000 on the year. 

Lean hog futures were mixed, adjusting spreads; watching supplies and long-term demand. July lean hogs closed $.85 lower at $91.92 and August lean hogs closed $.62 higher at $90.30. 

Cash hog closed mixed with a solid negotiated run.  Processors were able to move decent numbers without having to get too aggressive in their procurement efforts.  Pork export sales were up on the week, but slightly below the last month’s average.  Between the summer grilling season and the implementation of Prop 12, there is plenty to monitor on the domestic demand front.  Barrows and gilts at the National Daily Direct closed $.94 lower with a base range of $84.00 to $96 and a weighted average of $93.32; the Iowa/Minnesota closed $.20 higher with a weighted average of $94.75; the Western Corn Belt closed $.77 lower with a weighted average of $93.78; the Eastern Corn Belt closed $.06 higher with a weighted average of $90.73.

Butcher hog prices at the Midwest cash markets were steady at $62.  At Illinois, slaughter sow prices were $2 higher with moderate demand for moderate offerings at $16 to $25. Barrows and gilts were $3 higher with moderate demand for moderate offerings at $50 to $60.  Boars ranged from $15 to $25 and $5 to $10. 

Pork values closed higher – up $1.16 at $80.89. Hams were sharply higher.  Butts, bellies, picnics, and loins were higher.  Ribs were lower.  Estimated hog slaughter was 461,000 head – up 2,000 on the week and down 7,000 on the year.