Market News
Cattle futures pressured by weaker cash trade
At the Chicago Mercantile Exchange, live and feeder cattle closed lower, with pressure from the week’s lower cash trade and weakness in boxed beef prices. October live cattle closed $1 lower at $104.47 and December live cattle closed $.70 lower at $108.45. September feeder cattle closed $1.42 lower at $138.70 and October feeder cattle closed $1.20 lower at $139.40.
Another round of light trade was reported on Wednesday. Live deals in the South were at $103, $1 lower than Tuesday’s business and $2 lower than last week’s weighted averages. A handful of deals were also reported in Nebraska at $163 dressed, steady with Tuesday’s business and $4 lower than last week’s weighted averages. There was a light trade that took place in the South on Tuesday at mostly $104, that’s $1 lower than last week’s weighted averages. A very light trade took place in parts of the North at mostly $163, $4 lower than last week’s weighted averages. Today’s Fed Cattle Exchange had an offering of 436 head, there were 365 head sold for a weighted average of $103. 218-head were marked for 1 to 9-day delivery and 147 head are marked for 1 to 17-day delivery.
At the OKC West Livestock Auction in Oklahoma, compared to last week, feeder steers under 800 pounds were $3 to $6 lower and over 800 pounds were steady to $1 higher. Feeder heifers were $3 to $6 lower, except 800 to 900-pound heifers, which were mostly $1 to $2 lower. The USDA says demand was moderate and good for feeder steers. Steer and heifer calves traded with a lower undertone as demand for unweaned calves continues to get light. Quality was attractive to average. Receipts were down on the week and up on the year. Feeder supply included 51 percent steers and 77 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers 755 to 790 pounds brought $1333 to $138 and feeder steers 803 to 844 pounds brought $128.50 to $135. Medium and Large 1 feeder heifers 608 to 631 pounds brought $133 to $141 and feeder heifers 701 to 749 pounds brought $126 to $132.
Boxed beef closed lower with light demand for moderate offerings. Choice closed $.76 lower at $227.58 and Select closed $.93 lower at $213.82. The Choice/Select spread is $13.76. Estimated cattle slaughter is 117,000 head – down 1,000 on the week and even on the year.
Lean hog futures closed mostly higher on spread trade with support from the higher wholesale values during the session. October lean hogs closed $1.37 higher at $56.40 and December lean hogs closed $.72 higher at $56.50.
Cash hogs closed sharply higher with moderate negotiated purchases. Processors bid up to move their desired numbers. However, the market continues to struggle to see long-term price improvements as supplies are heavy and both global and domestic demand face uncertainty. The industry will continue to watch for consistent demand increases which should help provide at least some price support. Barrows and gilts at the National Daily Direct closed $1.22 higher with a base range of $38 to $48 for a weighted average of $44.25; the Iowa/Minnesota closed $2.28 higher for a weighted average of $44.87; the Western Corn Belt closed $2.36 higher for a weighted average of $44.87. 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 steady with good demand for heavy offerings at $11 to $23. Barrow and gilt prices were steady with good demand for moderate to heavy offerings at $24 to $28. Boars ranged from $1 to $3.
Pork values closed lower – down $1.03 at $73.51. Loins were sharply lower, and butts were lower. Ribs closed weak. Picnics, bellies, and hams were all higher to sharply higher. Estimated hog slaughter is 480,000 head – that’s down 2,000 on the week and down 8,000 on the year. Tuesday’s hog slaughter has been revised to 475,000 head.
