Market News

Sluggish start to week for cash cattle business

Chicago Mercantile Exchange live cattle futures were mixed, preparing for the week’s direct business, while feeders were down sharply on the strength in corn. August live was down $1.27 at $178.75 and October was $1.60 lower at $180.30. August feeders were $2.67 lower at $243.25 and September was down $2.65 at $246.62.

Direct cash cattle trade was quiet on Monday. New showlists appear to be lower in all major feeding states. Bids and asking prices have yet to be established. Significant trade volume will likely be delayed until the second half of the week. Last week’s trade was delayed until Thursday and Friday with Southern live deals ranging from $180 to $187, $2 higher than the prior week’s weighted average. Northern dressed sales ranged from $290 to $300, about $3 higher than the previous week’s weighted average basis Nebraska.

At the Oklahoma National Stockyards, feeder steers trended steady to $4 lower compared to the previous week. Feeder heifers were steady to $2 lower. Demand was moderate to good for feeder cattle. Hot, humid weather diminished demand for short weaned calves. Feeder supply included 53% steers and 64% of the offering was over 600 pounds. Medium and Large 1 feeder steers 602 to 641 pounds brought $256 to $293 and feeder steers 712 to 748 pounds brought $242 to $259.50. Medium and Large 1 feeder heifers 550 to 595 pounds brought $235 to $262 and feeder heifers 703 to 741 pounds brought $232 to $236.

Boxed beef cutout values closed higher. Choice was $1.42 higher at $304.16 and Select was up $.26 at $276.99.

Estimated cattle slaughter was 126,000 head – up 6,000 on the week and up 3,000 on the year.

Lean hog futures were pressured by the steady to lower cash during the session and continued uncertainties about sustained pork demand. August was down $.57 at $100.10 and October was $1.60 lower at $82.65.

Cash hog business started the week steady to sharply higher with light opening negotiated numbers for the major direct markets. As has been the case for the last several Mondays, the week started slow, but buyers did raise bids to move the needed near-term numbers, encouraged by the seeming stability of the wholesale pork market. The monthly cold storage report is out Tuesday at 3 Eastern/2 Central.

Barrows and gilts at the National Daily Direct were $3.79 higher with a base range of $96 to $107 and weighted average of $104.82. The Iowa/Minnesota was up $1.63 with a weighted average of $105.59. The Western Corn Belt was $1.76 higher with a weighted average of $105.59. The Eastern Corn Belt was not reported due to confidentiality.

Butcher hogs in Dorchester, Wisconsin were steady at $66. The Garnavillo, Iowa market is closed today. At Illinois, barrows and gilts were steady with moderate demand for moderate offerings at $57 to $67. Slaughter sow prices were steady with moderate demand for heavy offerings at $33 to $45. Boars were $15 to $25 and $5 to $10.

Pork values closed higher – up $1.96 at $117.21. Bellies, hams, ribs, and loins were higher. Picnics and butts were lower.

Estimated hog slaughter was 456,000 head – up 7,000 on the week and up 4,000 on the year.