Cattle futures sharply lower after holiday break
Chicago Mercantile Exchange live and feeder cattle futures were sharply lower ahead of the week’s widespread direct business. October live was down $1.05 at $123.75 and December was $1.37 lower at $129.55. September feeders were $2.20 lower at $156.27 and October was down $2.42 at $160.05.
Direct cash cattle trade was quiet Tuesday for the day with bids and asking prices yet to be established. Buyers and sellers are seemingly busy taking inventory. The bulk of the week’s business will likely come Wednesday or later. Last week, northern dressed deals had a wide range but mostly came in around $203, about $1 lower than the previous week’s weighted average. Southern live deals came in around $124, about $1 higher than the prior week’s business. Current asking prices are not yet established.
Boxed beef cutout values closed lower – choice $1.23 lower at $335.19 and select is $2.23 lower at $301.90. The choice/select spread is $33.29.
At the MO-Kan Livestock Market in Butler, Missouri, compared to the previous week, a light test of feeders sold with a weak undertone. USDA says demand was moderate on light supply. Feeder supply included 35 percent steers and 30 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers weighing 530 to 543 pounds brought $169.50 to $172 and feeder steers 601 to 662 pounds brought $163.50 to $167.50. Medium and Large 1 feeder heifers 530 to 547 pounds brought $152 to $163.50 and feeder heifers from 610 to 622 pounds brought $146 to $155.
Estimated cattle slaughter is 121,000 yead, even on the week and up 1,000 on the year.
Lean hog futures were pressured by the steady to lower cash during the session and uncertainties about sustained demand. October was down $1.47 at $88.10 and December was $1.32 lower at $80.77.
Cash hogs closed lower. The industry continues to monitor the availability of market-ready barrows and gilts. Demand for US pork on the global market and domestically has helped provide a lot of price support, and the industry hopes that to continue.
Barrows and gilts at the National Daily Direct have a weighted average of 87.56; the Iowa/Minnesota has a weighted average of 90.60; the Western Cornbelt has a weighted average of 90.57; the Eastern Cornbelt was not reported due to confidentiality.
Pork values closed lower, down $2.48 at $105.67. Bellies and ribs closed sharply higher; picnics higher. Loins and Butts closed lower. Hams closed more than $12 lower after being up more than $30 at midday.
Butcher hogs at the Midwest cash markets were steady at $70.
At Illinois, slaughter sow prices were steady with moderate demand for moderate to heavy offerings at $65 to $82. Barrow and gilt prices were steady with moderate demand for moderate offerings at $56 to $64. Boars ranged from $15 to $40.
Estimated hog slaughter is 481,000 head, up 2,000 on the week and 13,000 on the year.