Market News
Cattle futures mostly higher ahead of widespread direct business
At the Chicago Mercantile Exchange, live and feeder cattle were mostly higher ahead of widespread direct cash business and the mixed boxed beef prices during the session. October live cattle closed $.97 higher at $110.17 and December live cattle closed $1.15 higher at $113.10. October feeder cattle closed $.37 higher at $138.50 and November feeder cattle closed $.35 higher at $137.87.
A very light direct cash cattle trade was reported on Wednesday, but not near enough to establish a trend. Live deals in the South were at $108.50 and Northern dressed business was at $169. Both are above last week’s weighted averages. Asking prices in the South were around $110 live, while the North remained quiet. It’s likely significant trade volume will be delayed until sometime Thursday or Friday.
At the Kingsville Livestock Auction in Missouri, compared to last week, steers sold steady to $3 lower. Heifers were mostly steady. The USDA says demand was good for yearlings and the higher quality calves, moderate for the remainder and supply was moderate. Receipts were down on the week and up on the year. Feeder supply included 57 percent steers and 77 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers 769 to 793 pounds brought $140.60 to $150 and feeder steers 894 pounds brought $137.60 to $139.85. Medium and Large 1 feeder heifers 711 to 738 pounds brought $137.50 to $148 and feeder heifers 798 pounds brought $142.
Boxed beef closed mixed on light to moderate demand for moderate offerings. Choice closed $.64 higher at $216.88 and Select is $1.26 lower at $205.58. Estimated cattle slaughter is 119,000 head – down 1,000 on the week and up 1,000 on the year.
Lean hog futures closed higher with support from the sharply higher wholesale values during the session and long-term demand optimism. October lean hogs closed $.55 higher at $76.87 and December lean hogs closed $.70 higher at $64.57.
Cash hogs closed weak with a moderate negotiated run. The cash hog market continues to be driven by the supply and demand situation. The industry is optimistic demand for US pork will see a boost on the global market as a shift in the global supply situation continues. That’s supportive to prices. However, supplies of market-ready barrows and gilts are more than ample and processors continue to push daily slaughter totals higher. While that’s helping to work through the backlog of hogs in the production system, at the same time, it also adds more pork to a market that’s already saturated. Hog weights this week jumped to 283.4 pounds, that’s an increase of 1.6 pounds on the week and 0.9 pounds above year-ago levels.
Barrows and gilts at the National Daily Direct closed $.38 lower with a base range of $60 to $66.75 for a weighted average of $63.85; the Iowa/Minnesota closed $.54 lower for a weighted average of $63.49; the Western Corn Belt closed $.64 lower for a weighted average of $63.39. 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 steady with good demand for moderate offerings at $15 to $28. Barrow and gilt prices were firm with good demand for moderate to heavy offerings at $39 to $44. Boars ranged from $1 to $3.
Pork values closed higher – up $2.63 at $95.18. Hams closed $11.75 higher. Picnics were also higher. Loins, butts, bellies, and ribs were all weak to lower. Estimated hog slaughter is 489,000 head – up 22,000 on the week and down 3,000 on the year.
