Market News
Cattle futures lower on cash and wholesale pressure
Chicago Mercantile Exchange live cattle futures were lower, pressured by profit taking, along with the cash and wholesale business during the session. October was down $1.07 at $104.70 and December was $.97 lower at $109.15.
Feeder cattle were down on the same factors as the live pit. September was $.55 lower at $138.40 and October was down $1.60 at $138.25.
It was a quiet Wednesday for direct cash cattle trade. Some dressed bids surfaced in the north at $160 to $161, $2 to $3 lower than last week’s weighted average basis in Nebraska. Live bids came in around $105. Asking prices were around around $101 in the south, $2 lower than the week’s weighted averages.
Regional bids have been slow following Labor Day weekend. At the Hub City Livestock Auction in South Dakota, medium and large 1 steers weighing 800 to 900 pounds brought $135.00 to $146.50. Medium and large 1 heifers weighing 800 to 900 pounds brought $127.50 to $137.25.
Boxed beef cutout values closed moderate to sharply lower on Wednesday with light demand and increasing supplies for moderate to heavy offerings. Choice closed $1.87 lower at $222.95 and Select ended the day $.95 lower at $207.51. The choice/select spread is $15.44.
Estimated cattle slaughter is 120,000 head – up 3,000 on the week and 4,000 on the year.
Cash hogs closed higher Wednesday on a quiet day. Packer demand might trend higher as the week continues coming out of the holiday weekend with a likely be a spike coming in Saturday’s slaughter total. The industry is watching for indicators of retail demand after Labor Day weekend.
Barrows and gilts at the National Daily Direct are $3.49 higher for a weighted average of $48.97. The Iowa/Minnesota gained nearly $5 for a weighted average of $50.83. The western cornbelt closed nearly $5 higher at $50.34. The eastern cornbelt had no recent comparison to Wednesday’s close of $48.31.
After making sharp gains at midday, pork values closed modestly lower – down $.78 at $80.13. Loins and hams down more than $5. Butts were slightly higher. Picnics closed $5.45 higher and bellies closed $4.12 higher.
Estimated hog slaughter is 484,000 head – up 10,000 on the week and down 6,000 on the year.
Lean hog futures were higher, breaking out of the early mixed pattern following a sharply higher midday move in pork. Also, while the average weight for barrow and gilts Iowa/Southern Minnesota was up slightly on the week, it was below year ago levels. October was up $1.47 at $61.37 and December was $1.17 higher at $59.85.