Market News
Cattle futures mostly higher ahead of widespread cash trade
At the Chicago Mercantile Exchange, live and feeder cattle futures ended the day mostly higher, ahead of widespread direct cash business. October live cattle closed $.17 higher at $105.47 and December live cattle closed $.17 higher at $109.15. September feeder cattle closed $.17 lower at $140.12 and October feeder cattle closed $.02 higher at $140.65.
Some scattered direct cash cattle trade took place across cattle country on Tuesday. Live deals were reported in Kansas and in Texas at $104, that $1 lower than last week. There was a handful of trade in the North at mostly $163, $4 lower than last week’s weighted average basis in Nebraska. Look for more business to develop over the balance of the week.
At the Callaway Livestock Center in Missouri, compared to last week a light test of 400 to 500-pounds steers sold $4 to $5 higher, 550 to 800-pound steers were steady to $4 lower. Feeder heifers under 550 pounds sold with a steady to firm undertone on a light test, 550 to 600-pound heifers were $3 to $5 lower and 600 to 700-pound heifers were mostly steady. Overall quality was not as attractive as last week in some classes. Receipts are down slightly on the week. Feeder supply included 49 percent steers and 51 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers 625 to 646 pounds brought $157.50 to $162.25 and feeder steers 653 to 682 pounds brought $154.25 to $158.50. Medium and Large 1 feeder heifers 561 to 579 pounds brought $144 to $146.25 and feeder heifers 608 to 647 pounds brought $142.50 to $144.75.
Boxed beef closed mixed on moderate demand for moderate offerings. Choice closed $.39 higher at $228.34 and Select is $.57 lower at $214.75. The Choice/Select spread is $13.59. Estimated cattle slaughter is 120,000 head – up 2,000 on the week and up 6,000 on the year.
Lean hog futures ended the day higher on demand expectations ahead of Labor Day weekend and higher wholesale values during the session. October lean hogs closed $1.42 higher at $55.02 and December lean hogs closed $.65 higher at $55.77.
Cash hogs closed steady to weak with fairly light negotiated purchases. The cash hog market has been stuck in its current price pattern for some time now. Heavy supplies and demand uncertainties make it very difficult for prices to improve. Processors continue to push daily slaughter totals higher. While that’s helping to alleviate some of the pressure in the pork production system, it’s also bringing more pork to the market adding even more pressure to prices. Barrows and gilts at the National Daily Direct ended the day unchanged with a base range of $38 to $43.50 for a weighted average of $43.03; the Iowa/Minnesota closed $.22 lower for a weighted average of $42.59; the Western Corn Belt closed $.30 lower for a weighted average of $42.51. Prices at the Eastern Corn Belt were not reported due to confidentiality.
The Midwest cash markets are closed today. At Illinois, slaughter sow prices were firm with good demand for heavy offerings at $11 to $23. Barrow and gilt prices were $1 to $2 higher with good demand for moderate to heavy offerings at $24 to $28. Boars ranged from $1 to $3.
Pork values closed higher – up $1.92 at $74.54. Loins closed sharply higher. Hams and ribs were higher. Bellies closed firm. Butts were steady and picnics were sharply lower. Estimated hog slaughter is 480,000 head – down 4,000 on the week and up 5,000 on the year. Monday’s hog slaughter has been revised to 476,000 head.