Cattle futures mixed, mostly higher to start the week
At the Chicago Mercantile Exchange, live and feeder cattle were mixed, mostly higher, following Friday’s Cattle on Feed report. The report is considered neutral to bearish for deferred contracts. October live cattle closed $.37 higher at $107.95 and December live cattle closed $.25 higher at $111.65. October feeder cattle closed $.60 higher at $140.92 and November feeder cattle closed $.95 higher at $141.10.
A very quiet Monday for direct cash cattle trade activity. Showlists this week are larger in Nebraska/Colorado, somewhat smaller in Texas, and lower in Kansas. Bids and asking prices have yet to be established and it’s likely significant trade volume will be delayed until at least Midweek or later.
At mid-session, at the Oklahoma National Stockyards, compared to last week feeder steers are selling $2 to $3 higher and feeder heifers are steady to $1 lower. No comparison for steer and heifer calves as there is a limited comparable offering in the early rounds. The USDA says demand is moderate and quality is plain to average with a few attractive. Receipts are up on the week and down on the year. Feeder supply included 54 percent steers and 64 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers 653 to 690 pounds brought $141 to $155 and feeder steers 802 to 834 pounds brought $139.50 to $145.50. Medium and Large 1 feeder heifers 656 to 698 pounds brought $128.50 to $136.25 and feeder heifers 706 to 743 pounds brought $126 to $134.50.
Boxed beef closed weak to lower with light demand for moderate offerings. Choice is $1.62 lower at $217.72 and Select is $.56 lower at $206.42. Estimated cattle slaughter is 118,000 head – down 2,000 on the week and up 2,000 on the year.
Lean hog futures closed mixed on spread trade as the market continues to monitor long-term supply and demand issues. October lean hogs closed $.95 higher at $72.70 and December lean hogs closed $.40 lower at $64.02.
Cash hogs closed lower with a moderate negotiated run. The industry continues to keep a close eye on the supply and demand situation. There are concerns that the backlog of hogs in the supply chain isn’t decreasing as quickly as the industry would like. That adds additional price pressure heading into the final quarter of the year. Especially as the supplies of market-ready hogs are more than ample and that’s not expected to decline anytime soon. Demand strength has helped keep prices supported, but should a disruption occur to either global or domestic demand, it would send prices tumbling. Barrows and gilts at the National Daily Direct closed $.72 lower with a base range of $60 to $65 for a weighted average of $63.98; the Iowa/Minnesota closed $.80 lower for an average of $64.25; the Western Corn Belt closed $.47 lower for a weighted average of $64.16. The Eastern Corn Belt was not reported due to confidentiality.
Butcher hog prices at the Midwest cash markets are steady at $40. At Illinois, slaughter sow prices were $2 to $3 higher with good demand for light to moderate offerings at $14 to $25. Barrow and gilt prices were firm with good demand for moderate to heavy offerings at $40 to $45. Boars ranged $1 to $3
Pork values closed higher – up $2.07 at $93.39. Hams and bellies were sharply higher. Ribs, picnics, and butts were firm to higher. Loins closed lower. Estimated hog slaughter is 489,000 head – up 11,000 on the week and up 4,000 on the year. Friday’s hog slaughter has been revised to 462,000 head and Saturday’s hog slaughter revised to 220,000 head.