Weaker cash trade pressuring cattle futures

Market News

Weaker cash trade pressuring cattle futures

At the Chicago Mercantile Exchange, live and feeder cattle closed lower, pressured by the weaker cash trade.  Feeder cattle had additional pressure from the day’s higher move in corn.  August live cattle closed $1.07 lower at $102.97 and October live cattle closed $.85 lower at $106.15.  August feeder cattle closed $.50 lower at $141.97 and September feeder cattle closed $.55 lower at $141.22. 

Direct cash cattle trade was sluggish on Thursday.  Bids were anywhere from $104 to $105 live and $165 dressed, both below this week’s business.  There was a light to moderate trade that took place on Wednesday with deals in the South mostly at $105 live, $1 lower than last week’s weighted averages.  Northern dressed deals ranged from $166 to $167. 

At the Mitchell Livestock Auction in South Dakota, compared to last week a lower undertone was noted on feeder steers.  Feeder heifers 700 to 750 pounds were $4 lower, the rest of heifers sold on an unevenly steady market.  There were some load lots in the day’s offering.  The USDA says demand was good.  Receipts were down on the week and the year.  Feeder supply included 62 percent steers and 95 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 815 to 827 pounds brought $138.50 to $143 and feeder steers 952 to 990 pounds brought $131.25 to $135.  Medium and Large 1 feeder heifers 722 to 740 pounds brought $141 to $146.35 and feeder heifers 828 pounds brought $137.75. 

Boxed beef ended the day steady with moderate demand for moderate offerings.  Choice closed $.09 higher at $231.54 and Select closed $.15 higher at $214.26.  The Choice/Select spread was $17.28. Estimated cattle slaughter is 119,000 head – even on the week and up 1,000 on the year. 

Lean hog futures closed modestly higher, supported by the strength in wholesale values.  October lean hogs closed $.17 higher at $55.72 and December lean hogs closed $.25 higher at $56.57. 

Cash hogs closed lower with fairly light negotiated purchases.  Heavy supplies continue to weigh heavily on the cash hog market.  Processors are still ramping up daily slaughter totals.  While that does help keep the supply chain moving and alleviate some of the pressure from the backlog in the pork production system, it also adds more pork to the market.  Prices will likely remain on a roller coaster for an indefinite amount of time as the market monitors the ongoing uncertainty in the supply and demand situation. Barrows and gilts at the National Daily Direct closed $1.40 lower with a base range of $37 to $46 for a weighted average of $42.69; the Iowa/Minnesota closed $2.16 lower for a weighted average of $40.95; the Western Corn Belt closed $1.72 lower for a weighted average of $41.32. 

Butcher hog prices at the Midwest cash markets are steady at $27. At Illinois, slaughter sow prices were steady with good demand for moderate offerings at $11 to $23.  Barrow and gilt prices were steady with good demand for moderate to heavy offerings at $22 to $26.  Boars ranged from $1 to $3. 

Pork values closed higher – up $.88 at $72.78.  Loins and ribs were sharply higher.  Butts, hams, and bellies were firm to higher.  Picnics closed sharply lower.  Estimated hog slaughter is 482,000 head – up 6,000 on the week and down 6,000 on the year. 

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