Cattle futures mixed heading into midweek
At the Chicago Mercantile Exchange, live and feeder cattle ended the day mixed ahead of widespread direct cash business. October live cattle closed $.32 lower at $122.45 and December live cattle closed $.27 lower at $127.80. September feeder cattle closed $.15 lower at $154.85 and October feeder cattle closed $.05 lower at $156.62.
It was a quiet Tuesday for direct cash cattle trade activity. Bids and asking prices have yet to be established. It’s likely significant trade volume will be delayed until Wednesday or later.
At the Callaway Livestock Center in Missouri, compared to last week steer calves under 500 pounds were very lightly tested, steers 500 to 550 pounds were steady and 550 to 650 pounds were steady to $3 lower. Steers 700 to 750 pounds sold on a light test and were steady to $5 lower. Feeder heifers 450 to 500 pounds were steady to $3 lower and heifers 500 to 700 pounds were steady and 700 to 750-pound heifers sold with a firm undertone. The USDA says demand was moderate to good on a moderate offering. There was a quality offering of steers weighing 500 to 800 pounds and several pot loads and part loads sold with good weighing conditions. Receipts were down slightly on the week, but up on the year. Feeder supply included 66% steers and 59% of the offering was over 600 pounds. Medium and Large 1 feeder steers 550 to 597 pounds brought $167 to $180 and feeder steers 600 to 643 pounds brought $164.25 to $174. Medium and Large 1 feeder heifers 575 to 598 pounds brought $152 to $159 and feeder heifers 614 to 630 pounds brought $160.25 to $163.50.
Boxed beef cutout values closed sharply lower with light demand for heavy offerings. Choice closed $4.29 lower at $311.37 and Select closed $2.74 lower at $278.01. The Choice/Select spread is $33.36. Estimated cattle slaughter is 122,000 head – up 2,000 on the week and even on the year.
Lean hog futures ended the day mostly lower, concerned about long-term demand uncertainty. October lean hogs closed $.60 lower at $84.37 and December lean hogs closed $.62 lower at $73.60.
Cash hogs closed lower with moderate negotiated purchases. Processors continue to monitor the availability of market-ready barrows and gilts. With the ample supplies, they’ve been able to move their desired numbers with lower bids. Demand for US pork on the global market and domestically has been strong, but there are some concerns about the long-term demand picture. Barrows and gilts at the National Daily Direct closed $1.18 lower with a base range of $76 to $81 and a weighted average of $78.14. The Iowa/Minnesota closed with a weighted average of $78.44 and the Western Corn Belt had a weighted average of $78.02. Prices at the Eastern Corn Belt were not reported due to confidentiality.
Butcher hogs at Dorchester, Wisconsin are $8 lower than the last week at $60. Garnavillo, Iowa is closed for the week. At Illinois, slaughter sow prices were mostly $4 to $5 lower with moderate demand for heavy offerings at $55 to $72. Barrow and gilt prices were weak with moderate demand for moderate offerings at $46 to $57. Boars ranged from $12 to $40.
Pork values closed lower, down $.13 at $102.76. Picnics, butts, and bellies were all sharply lower. Loins were about steady, while ribs and hams were higher. Estimated hog slaughter is 467,000 head – down 14,000 on the week and down 19,000 on the year. Monday’s hog slaughter has been revised to 463,000 head.