Live cattle mixed ahead of the bulk the week’s cash trade
At the Chicago Mercantile Exchange, live cattle closed mixed ahead of the bulk of this week’s direct cash business. Feeder cattle were lower, pressured by the modestly higher move in corn. October live cattle closed $.37 lower at $106.72 and December live cattle closed $.37 higher at $111.95. September feeder cattle closed $1.17 lower at $140.50 and October feeder cattle closed $1.27 lower at $142.42.
A light to moderate direct cash cattle trade developed in the South on Wednesday. Live deals in Kansas were at $103 and in Texas at $103 with a few at $103.50. That’s about $2 higher than last week’s weighted averages. Asking prices in the South are still hovering around $105 to $106 live. It’s been quiet in the North, with business not expected to pick up until a little later in the week.
At the Kingsville Livestock Auction in Missouri, compared to last week, based on light comparisons, steer calves sold steady and yearlings sold with firm undertones. Heifers were steady to $4 higher. There was a nice offering of yearlings on hand with several loads and larges consignments on offer. The USDA says demand was moderate to good and best for the loads of steers and 550 to 725-pound heifers. There were several new-crop calves in the offering and demand was moderate with varying degrees of discounts depending on quality. Supply was moderate to heavy. Receipts were up on the week and the year. Feeder supply included 51 percent steers and 56 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers 650 to 673 pounds brought $150 to $154 and feeder steers 852 to 855 pounds brought $138.50 to $140.85. Medium and Large 1 feeder heifers 572 to 590 pounds brought $137.50 to $151 and feeder heifers 658 to 685 pounds brought $135.60 to $145.25.
Boxed beef closed lower on light demand for moderate offerings. Choice closed $.71 lower at $215.38 and Select is $1.77 lower at $204.51. Estimated cattle slaughter is 120,000 head – even on the week and up 3,000 on the year.
Lean hog futures closed lower on follow-through selling and demand uncertainty. The market is also waiting for Thursday’s latest export sales numbers. October lean hogs closed $.47 lower at $65.22 and December lean hogs closed $1.07 lower at $61.97.
Cash hogs closed sharply higher with solid negotiated numbers. Packers bid up to move their desired numbers. While there is hope demand for US pork will see a boost as China and other countries have halted imports of pork from Germany, it’s purely speculative at this point and the current supply situation makes it very difficult for prices to push higher for an extended period of time. Hog weights this week increased to 279.7 pounds. That’s up 3 pounds on the week and down 1.6 pounds on the year. Barrows and gilts at the National Daily Direct closed $1.91 higher with a base range of $47 to $65 for a weighted average of $60.88; the Iowa/Minnesota closed $.90 higher for a weighted average of $61.71; the Western Corn Belt closed $1.89 higher with a weighted average of $62.23; the Eastern Corn Belt closed $1.47 higher with a weighted average of $59.01.
Butcher hog prices at the Midwest cash markets are steady at $28 and $6 higher in Red Oak, Iowa at $34. At Illinois, slaughter sow prices were steady with good demand for moderate to heavy offerings at $11 to $23. Barrow and gilts prices were weak with good demand for moderate to heavy offerings at $35 to $41. Boars ranged from $1 to $3.
Pork values closed lower – down $1.12 at $83.14. Butts and loins were sharply lower. Picnics were lower. Ribs and hams were weak. Bellies were steady. Estimated hog slaughter is 485,000 head – up 1,000 on the week and down 2,000 on the year.