Market News
Cattle futures up waiting for direct business
At the Chicago Mercantile Exchange, live and feeder cattle were up ahead of the week’s direct business and Friday’s On Feed report from the USDA. October live cattle closed $1.57 higher at $178.80 and December lives closed $1.50 higher at $179.85. October feeder cattle closed $1.75 higher at $240.75 and November feeder cattle closed $2.72 higher at $238.30.
Direct cash cattle trade activity was quiet again Tuesday. Bids and have been slow to surface. Asking prices were around $184 to $185 live out of the South. With Friday’s Cattle on Feed report, it’s possible that significant trade volume holds out until sometime Thursday or Friday.
At the Callaway Livestock Center in Missouri, steers under 700 pounds were steady to firm with spots of $2 higher on six-weight steers. Yearling steers over 700 pounds were $4 to $7 higher. Feeder heifers under 700 pounds were lightly tested, heifers 700 to 750 pounds sold with a higher undertone. The USDA says demand was good on a moderate supply. The best demand was on the top-quality pot loads of yearling steers over 700 pounds. Receipts were down on the week, but up on the year. Feeder supply included 78% steers and 76% of the offering was over 600 pounds. Medium and Large 1 feeder steers 750 to 788 pounds brought $249.50 to $265.50 and feeder steers 861 to 898 pounds brought $241.60 to $243.75. Medium and Large 1 feeder heifers 558 to 583 pounds brought $256 to $260 and feeder heifers 708 to 730 pounds brought $240 to $248.
Boxed beef closed mixed with light to moderate demand for heavy offerings. Choice was $.66 lower at $303.91 and Select closed $.08 higher at $292.22. The Choice/Select spread is $11.69. Estimated cattle slaughter was 125,000 head – up 1,000 on the week and down nearly 1,000 on the year.
Lean hog futures ended the day higher, supported by higher cash business and demand optimism. October lean hogs closed $1.85 higher at $81.77 and December learn hogs closed $1.52 higher at $73.70.
Cash hogs closed higher with a solid negotiated run. Processors have started this week more aggressive in their procurement efforts and have been bidding up to move needed numbers. Prices have reflected that. Demand for U.S. pork on the global market continues to be a bright spot, providing price support. There are ongoing concerns about what’s happening with domestic demand long-term. Pork supplies are ample, and the industry continues to monitor the availability of market-ready hogs and hog weights. Barrows and gilts at the National Daily Direct closed $.37 higher with a base range of $73 to $78.50 and a weighted average of $77.33; the Iowa/Minnesota closed $.06 higher with a weighted average of $77.26; the Western Corn Belt closed $.20 higher with a weighted average of $77.34. Prices at the Eastern Corn Belt were not reported due to confidentiality.
Butcher hog prices at the Midwest cash markets are steady at $60. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $53 to $65. Barrows and gilts were steady with moderate demand for moderate offerings at $45 to $55. Boars ranged from $20 to $30 and $15 to $25.
Pork values closed higher – up $.78 at $95.00. Hams and bellies were both sharply higher. Picnics, butts, ribs, and loins were all lower. Estimated hog slaughter was 474,000 head – down 10,000 on the week and down a little more than 11,000 on the year.