Cattle futures mixed waiting for cash business to develop
At the Chicago Mercantile Exchange, live cattle were mixed and feeder cattle were mostly lower adjusting spreads, watching corn and waiting for cash business to develop. August live cattle closed $1.37 lower at $124.42 and October live cattle closed $1.40 lower at $130.30. August feeder cattle closed $.72 higher at $159.30 and September feeder cattle closed $.62 lower at $165.15.
Direct cash cattle trade activity has been very slow to develDirect cash cattle trade activity has been very slow to develop this week. There were just a handful of deals reported in Nebraska and Iowa with a wide range of $200 to $208 dressed and in Texas at $120 to $122 live. Asking prices are expected to be restated around $125 plus live in the South and $205 dressed in the North. Look for business to pick up over the balance of the week. Wednesday’s Fed Cattle Exchange had an offering of 4,676 head of which just 578 head sold between $118 to $122.
At the OKC West Livestock Auction in Oklahoma, compared to last week steer and heifer calves were mostly steady. The USDA says demand was moderate to good, especially for light-weaned calves under 450 pounds. Receipts were down significantly on the week and the year. Feeder supply included 62% steers and 32% of the offering was over 600 pounds. Medium and Large 1 feeder steers 451 to 498 pounds brought $170 to $179 and feeder steers 650 to 662 pounds brought $169.50 to $172.50. Medium and Large 1 feeder heifers 359 to 394 pounds brought $170 to $175 and feeder heifers 457 to 473 pounds brought $149 to $159.
Boxed beef closed weak to lower on light demand for fairly light offerings. Choice closed $.69 lower at $346.89 and Select closed $1.21 lower at $315.69. The Choice/Select spread is $31.20. Estimated cattle slaughter is 117,000 head – down 3,000 on the week and even on the year.
Lean hog futures ended the day mixed, adjusting spreads with support from the stronger cash business amid demand uncertainty. October lean hogs closed $1.77 higher at $88.75 and December lean hogs closed $1.17 higher at $81.95.
Cash hogs closed lower with a solid negotiated run. Packers continue to monitor the availability of market-ready barrows and gilts. Demand for US pork on the global market and domestically has been largely supportive to prices. That is expected to continue, however, should a disruption to demand occur, prices would likely move lower. Barrows and gilts at the National Daily Direct closed $.72 lower with a base range of $91 to $101 and a weighted average of $96.10; the Iowa/Minnesota had a weighted average of $98.85 and the Western Corn Belt had a weighted average of $98.63. Prices at the Eastern Corn Belt were not reported due to confidentiality.
Butcher hog prices at the Midwest cash markets were steady at $70. At Illinois, slaughter sow prices were steady with good demand for heavy offerings at $70 to $87. Barrows and gilts were steady with moderate to good demand for moderate to heavy offerings at $61 to $66. Boars ranged from $45 to $50 and $10 to $12.
Pork values closed $.77 lower at $110.24. Picnics were sharply lower. Ribs, hams, and loins were also lower. Bellies and butts were higher. Estimated hog slaughter is 473,000 head – down 5,000 on the week and down 7,000 on the year.