Market News

Wednesday’s cash business sends cattle futures lower

Chicago Mercantile Exchange live cattle futures were lower, pressured by Wednesday’s direct cash cattle business and the lower move in corn. Contracts are oversold and did attempt some mixed activity, but were unable to follow through. August was down $1.15 at $108.85 and October was $1.45 lower at $106.60.

Feeder cattle were lower on cash pressure, but losses were limited by that decline in corn prices. August was $.35 lower at $141.17 and September was down $.85 at $141.30.

Direct cash cattle markets were quiet after moderate to fairly active business Wednesday in most of the major feeding areas. The bulk of the trade was done at $115 on the live basis, down $2 to $3 on the week, and $183 to mostly $185 dressed, mostly $2 to as much as $4 lower than Nebraska’s weighted average last week. Given the trade volume, business the rest of the week could be limited to clean up. Asking prices for what’s left on the showlist are expected to be around $116 on the live basis and $185 to $186 dressed.

Boxed beef closed lower on light to moderate demand and moderate offerings. Choice was down $1.03 at $200.63 and Select was $.42 lower at $196.19. The estimated cattle slaughter of 119,000 head was up 1,000 on the week and 6,000 on the year.

At the Mitchell Livestock Auction feeder cattle sale in South Dakota Thursday, it was a much lighter offering than the previous week. Feeder steers and heifers had a weaker undertone. The USDA says demand was moderate and what cattle were available were attractive with mostly moderate to moderate plus flesh. Several loads and part loads of yearlings made up the bulk of the showlist. 59% of the weekly offering were steers and 98% of the run weighed more than 600 pounds. 109 head of Medium and Large 1 feeder steers averaging 972 pounds ranged from $135.50 to $139.10 and Large 1 feeder steers weighing 1,000 to 1,100 pounds brought $128 to $139. 90 head of Medium and Large 1 feeder heifers averaging 887 pounds were reported at $130.75 to $135 and 186 head averaging 906 pounds sold at $129.25.

Lean hog futures were mostly lower on the firm midday pork, the steady to lower cash, and spread activity. The trade’s continuing to get ready for the eventual expansion of current front month August, which was the only contract in the black at the end of the day. August was up $.32 at $84.45 and October was down $.27 at $67.97.

Cash hogs were steady to lower. Buyers followed through on Wednesday, with help from the good processing margins. Saturday’s kill is expected to be around 130,000 head, making up for a slowdown earlier in the week. Both sides of the business continue to monitor the seasonal increase in market ready numbers.

Iowa/Southern Minnesota direct barrows and gilts closed $1.29 lower at $76 to $80.50 for a weighted average of $79.17, the Western Cornbelt was down $1.28 at $75 to $80.50 with an average of $79.10, and national direct business was $.48 lower at $75 to $80.50 for an average of $78.50. The Eastern Cornbelt had no recent comparison with a range of $76 to $80 and a weighted average of $77.46. Butcher hogs at the Midwest cash markets were steady at $51 to $58. Missouri direct butchers were steady at $70 to $73 on light to moderate supply and demand. Sows were steady to $1 lower at $55 to $72. Illinois direct sows were $2 to $4 lower at $58 to $72 on moderate demand for light to moderate offerings. Barrows and gilts were $1 lower at $48 to $55 on moderate demand for moderate supplies. Boars ranged from $10 to $38.

Pork closed $.11 higher at $95.17. Butts, loins, ribs, and bellies were higher. The estimated hog slaughter of 447,000 head was up 8,000 on the week and 13,000 on the year.