Cattle futures lower waiting for cash business to develop
At the Chicago Mercantile Exchange, live cattle were mostly lower and feeders were lower ahead of widespread direct cash business. August live cattle closed $.22 lower at $123.30 and October live cattle closed $1 lower at $128.12. August feeder cattle closed $.62 lower at $156.57 and September feeder cattle closed $1.07 lower at $160.92.
Direct cash cattle trade activity was relatively quiet on Tuesday. There were a few asking prices that surfaced in the South at $124 live. Bids were few and far between. It’s likely significant trade volume will take place in the latter half of the week.
At the Callaway Livestock Center in Missouri, compared to last week feeder steers under 550 pounds were steady, steers 550 to 650 pounds were steady to $5 higher, and steers over 650 pounds were $5 to $10 higher. Feeder heifers under 600 pounds were steady to $5 higher and heifers over 600 pounds were met with a higher undertone. Receipts were up on the week and the year. Feeder supply included 48% steers and 54% of the offering was over 600 pounds. Medium and Large 1 feeder steers 500 to 544 pounds brought $183 to $194 and feeder steers 658 to 685 pounds brought $163 to $171. Medium and Large 1 feeder heifers 551 to 548 pounds brought $158 to $166 and feeder heifers 677 pounds brought $161.
Boxed beef = closed sharply higher on strong demand for moderate offerings. Choice is $8.26 higher at $338.06 and Select is $3.22 higher at $306.77. The Choice/Select spread is $31.29. Estimated cattle slaughter is 121,000 head – up 4,000 on the week and up 2,000 on the year.
Lean hog futures ended the day mostly lower on profit-taking and the recent decline in cash prices. October lean hogs closed $1.10 lower at $87.90 and December lean hogs closed $.77 lower at $81.07.
Cash hogs closed sharply higher with a solid negotiated run as packers bid up to move their desired numbers. The strong demand for US pork on the global market and domestically continues to provide some price support. That’s expected to continue. The industry is monitoring the availability of market-ready hogs. Barrows and gilts at the National Daily Direct closed $2.64 higher with a base range of $92.50 to $105 and a weighted average of $98.32; the Iowa/Minnesota had a weighted average of $102.95; the Western Corn Belt had a weighted average of $102.74; the Eastern Corn Belt had a weighted average of $96.29.
Butcher hog prices at the Midwest cash markets are $2 lower at $68. At Illinois, slaughter sow prices are steady with good demand for moderate to heavy offerings at $69 to $87. Barrow and gilt prices were steady to $2 lower with moderate demand for moderate to heavy offerings at $62 to $68. Boars ranged from $45 to $50 and $10 to $12.
Pork values closed lower – down $1.23 at $118.12. Picnics, butts, and bellies were all sharply lower. Hams, loins, and ribs were all higher. Estimated hog slaughter 478,000 head – up 6,000 on the week and down 3,000 on the year.