Market News
Cattle futures higher ahead of widespread direct cash business
At the Chicago Mercantile Exchange, closed higher on oversold signals ahead of wide-spread direct cash business. October live cattle closed $1.85 higher at $124.12 and December live cattle closed $2.50 higher at $129.65. September feeder cattle closed $3.07 higher at $155.27 and October feeder cattle closed $2.70 higher at $158.15.
Another quiet day for direct cash cattle trade activity. Bids and asking prices have been slow to surface. It’s likely significant trade volume will be delayed until midweek or later. The CBP Cash Pool had a small sale at $124. The fire at the JBS facility in Grand Island, Nebraska, which shut down the plant yesterday, did not impact the plant’s primary production facility and resumed operations on Tuesday.
At the Callaway Livestock Center in Missouri, compared to two weeks ago the light test of steer calves was mostly $8 to $10 lower, steers 500 to 600 pounds were $4 to $6 lower. Steers over 600 pounds were steady to firm on limited comparisons. Feeder heifers 450 to 600 pounds were $5 to $8 lower, 6-weighted heifers were steady to firm. The USDA says demand was moderate to good with the best demand on the good quality offering of 600-to-850-pound steers. Receipts were up from two weeks ago and up on the year. Feeder supply included 72% steers and 62% of the offering was over 600 pounds. Medium and Large 1 feeder steers 600 to 646 pounds brought $165 to $176 and feeder steers 700 to 738 pounds brought $160 to $168. Medium and Large 1 feeder heifers 550 to 598 pounds brought $155 to $159.50 and feeder heifers 601 to 646 pounds brought $156 to $164.75.
Boxed beef was lower at midday on light demand for solid offerings. Choice closed $3.04 lower at $322.79 and Select closed $1.54 lower at $290.62. The Choice/Select spread is $32.27. Estimated cattle slaughter is 120,000 head – down 1,000 on the week and down 2,000 on the year.
Lean hog futures ended the day lower, pressured by long-term demand concerns. October lean hogs closed $.40 lower at $80.37 and December lean hogs closed $1.20 lower at $72.17.
Cash hogs closed lower with a solid negotiated run. Packers started the day aggressive in their procurement efforts, but backed down some in the afternoon. Demand has been strong for US pork recently on both the global market and domestically, but there are concerns that could wane and prices have seen a lot of ups and downs recently. Barrows and gilts at the National Daily Direct closed $.41 lower with a base range of $81 to $90.50 and a weighted average of $84.07. Both the Iowa/Minnesota and the Western Corn Belt closed with a weighted average of $84.46. Prices at the Eastern Corn Belt were not reported due to confidentiality.
Butcher hog prices at the Midwest cash markets are steady at $72. At Illinois, slaughter sow prices were steady with moderate demand for moderate to heavy offerings at $63 to $79. Barrows and gilts were weak with moderate demand for moderate offerings at $52 to $61. Boars were $35 to $40 and $15 to $18.
Pork values closed sharply higher – up $4.08 at $105.20. Hams and loins were both sharply higher. Bellies, picnics, and ribs were higher. Butts were lower. Estimated hog slaughter is 481,000 head – up 12,000 on the week and down 2,000 on the year.
