Live cattle futures are mixed ahead of Friday’s reports

Market News

Live cattle futures are mixed ahead of Friday’s reports

At the Chicago Mercantile Exchange, live cattle ended the day mixed ahead of Friday’s cattle on feed and inventory numbers.  Feeder cattle closed higher on position squaring ahead of Friday’s reports.  August live cattle closed $.35 lower at $101.50 and October live cattle closed $.40 lower at $105.72.  August feeder cattle closed $.20 higher at $141.52 and September feeder cattle closed $.30 higher at $143.27. 

A light to moderate direct cash cattle trade developed across most of cattle country on Wednesday.  Northern dressed deals were marked at $158, that’s $1 higher than last week’s weighted average basis in Nebraska.  Live deals in that area were at $98, $1 higher than last week’s weighted averages.  Live deals in the South were at $96 to $96.50, steady to $.50 higher than Tuesday’s business. 

At the Kingsville Livestock Auction in Missouri, compared to last week steers and heifers sold mostly steady, except for steers calves under 500 pounds, which were $5 higher.  The USDA says demand was good for the light supply.  Cattle carried more flesh this week and there were more calves in the Mix.  Receipts were nearly steady on the week and up on the year.  Feeder supply included 57 percent steers and 48 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 602 to 647 pounds brought $149.50 to $164 and feeder steers 654 to 697 pounds brought $144 to $153.  Medium and Large 1 feeder heifers 518 to 543 pounds brought $142.50 to $149 and feeder heifers 551 to 580 pounds brought $134 to $141. 

Boxed beef closed mixed on light demand for light to moderate offerings.  Choice closed $.27 higher at $201.15 and Select closed $2.02 lower at $189.28.  The Choice/Select spread is $11.87. Estimated cattle slaughter is 117,000 head, down 2,000 on the week and down 5,000 on the year. 

Lean hog futures closed mostly higher ahead of the July Cold Storage report.  August lean hogs closed $1.17 higher at $52.65 and October lean hogs closed $.05 higher at $50.07. 

Cash hogs closed firm to sharply higher with solid negotiated numbers.  The availability of market-ready hogs is more than ample, and processors continue to push daily slaughter totals to at or even above pre-COVID-19 levels.  That’s helping to not only keep the supply chain moving, but also start to get into that backlog of hogs in the production system.  However, it’s also adding more pork to a market that is facing serious demand uncertainty.  If prices are going to push higher, the industry needs to see additional demand both globally and domestically.  Barrows and gilts at the National Daily Direct closed $.66 higher with a base range of $30.50 to $37 for a weighted average of $34.25; the Iowa/Minnesota closed $2.82 higher for a weighted average of $35.51; the Western Corn Belt closed $2.73 higher for a weighted average of $35.17.  The Eastern Corn Belt was not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $24. 

At Illinois, slaughter sow prices were firm with good demand for moderate to heavy offerings at $9 to $20.  Barrow and gilt prices were $1 higher with good demand for moderate to heavy offerings at $15 to $23.  Boars ranged from $1 to $3. 

Pork values closed sharply lower – down $2.90 at $69.33.  Picnics, bellies, loins, butts, and hams were sharply lower.  Ribs closed weak.  Estimated hog slaughter is 478,000 head – that’s up 8,000 on the week and up 3,000 on the year.  Tuesday’s hog slaughter has been revised to 473,000 head. 

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