Market News
Cattle futures mixed awaiting direct business
Chicago Mercantile Exchange live and feeder cattle futures were mixed, getting ready for the week’s widespread direct business. Feeders did pick up some support from the lower move in corn. October live was down $.02 at $122.77 and December was up $.55 at $128.07. September feeders were up $.12 at $155 and October was $.30 higher at $156.67.
It was a typical quiet start to the week for cash cattle trade. Bids and asking prices were not able to establish with the bulk of the week’s business expected to come later. Beef cutout values are expected to move lower during the week on light box movement. The bulk of last week’s business took place on Wednesday with scattered deals otherwise. Southern live deals were steady with the previous week’s weighted average with most business coming in from $123 to $124. Northern dressed deals ranged from $196 to $200, $1 to $5 lower than the previous week’s weighted averages.
Boxed beef cutout values closed higher, choice $1.19 higher at $315.66 and select $1 higher at $280.75. The choice/select spread is $34.91.
Estimated cattle slaughter is 119,000 head. That’s up 5,000 on the week and 1,000 on the year.
At the Douglas County Livestock Auction in Ava, Missouri, compared to the previous week, feeder steers sold steady to $4 lower with feeder heifers $3 to $7 lower. USDA says demand was moderate on moderate supply. Feeder supply included 45 percent steers and 39 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers weighing 605 to 642 pounds brought $150 to $161.50 and feeder steers from 700 to 740 pounds brought $140 to $152.50. Medium and Large 1 feeder heifers weighing 402 to 448 pounds brought $145 to $156 and feeder heifers from 478 to 495 pounds brought $145 to $156.
Lean hog futures were lower on outside market and cash pressure. The USDA’s Quarterly Hogs and Pigs Report is out Friday afternoon. October was down $.75 at $84.97 and December was $.82 lower at $74.22.
Cash hogs closed lower. Processors continue to monitor the availability of market-ready barrows and gilts and have been able to move their desired numbers at lower bids recently. Demand for US pork on the global market and domestically has been strong, which the industry does expect to continue.
Barrows and gilts at the National Daily Direct closed $2.25 lower with a base range of $78 to $80 for a weighted average of $79.32; the Iowa/Minnesota had a weighted average of $79.86; the Western Cornbelt had a weighted average of $79.58; the Eastern Cornbelt was not reported due to confidentiality.
Butcher hogs at Dorchester, Wisconsin are $8 lower than the last test at $60. Garnavillo, Iowa is closed for the week.
At Illinois, slaughter sow prices were $1 to $3 lower with good demand for moderate offerings at $58 to $75. Barrow and gilt prices were $1 to $2 lower with moderate demand for moderate offerings at $47 to $58. Boars ranged from $12 to $40.
Pork values closed lower, down $2.52 at $102.89. Bellies closed sharply higher, up nearly $7. Ribs up nearly $6. Loins and butts closed lower, hams sharply lower.
Estimated hog slaughter is 478,000 head, up 7,000 on the week but down 1,000 on the year.
