Market News

Midday cash livestock markets

Direct cash cattle trade activity is pretty quiet.  No bids have been renewed yet today.  Asking prices for cattle on showlists are at $112 plus in the South and $180 dressed in the North.  There was a light live trade that took place yesterday at $105, that’s $4 lower than last week’s weighted average basis in the South.  Today’s Fed Cattle Exchange had an offering of 7,561 head and 1,443 head sold for a weighted average price of $105.  746 head are marked for 1 to 9-day delivery and 697 head are marked for 1 to 17-day delivery. 

Boxed beef is sharply lower at midday on light demand for moderate to heavy offerings.  Choice is $3.41 lower at $224.47 and Select is $3.64 lower at $214.11.  The Choice/Select spread is $10.36. 

At the Philip Livestock Auction in South Dakota, feeder cattle offerings were too limited for a complete comparison, but a lower undertone was evident.  There were just a few strings of feeder steers and heifers on offer and many consignors canceled due to the current weakness in the cattle market following last week’s sharp declines.  Receipts of 904 head are down significantly from the most recent sale.  Medium and Large 1 feeder steers 737 pounds brought $136.50 and feeder steers 814 to 828 pounds brought $126 to $126.50.  Medium and Large 1 feeder heifers 604 to 635 pounds brought $139.50 to $139.75 and feeder heifers 676 to 687 pounds brought $135.50. 

Cash hogs opened steady with fairly light negotiated numbers.  The cash hog market remains under pressure as supplies of ready barrows and gilts are more than ample, but packers’ procurement efforts aren’t aggressive.  There’s concern domestic demand could see a lull, which puts even more pressure prices.  However, there is optimism that better times are ahead, which could create a resurgence in domestic demand and stronger prices.  The global protein picture still is a silver lining for the US pork sector.  And as long as production isn’t significantly disrupted, US pork is well-positioned to fill the gaps left in the global protein supply by African swine fever. Hog weights declined this past week to 284.7 pounds, that’s down .7 of a pound from last week and down a full pound on the year.  Barrows and gilts at the National Daily Direct opened $.22 lower with a base range of $40 to $40.46 for a weighted average of $40.40.  Prices at the regional directs were not reported due to confidentiality. 

Pork values opened sharply lower – down $4.46 at $50.27.  Loins, ribs, and butts are all sharply lower.  Bellies are lower.  Picnics and hams are steady to firm.