Market News
Feeder cattle supported by lower move in corn
At the Chicago Mercantile Exchange, live cattle closed mostly higher and feeders were higher, supported by the day’s lower move in corn. October live cattle closed $.20 higher at $122.82 and December live cattle closed $.20 lower at $127.85. October feeder cattle closed $1.10 higher at $156.10 and November feeder cattle closed $1.85 higher at $156.87.
It was a relatively quiet Tuesday for direct cash cattle trade. There were a handful of deals reported in the South at $122 live and in the North at $193 dressed. That’s not near enough to establish a trend. Look for more business to develop as the week progresses. There were also a handful of sales reported at the CBP Texas Cash Pool at $124.15.
At the Callaway Livestock Center in Missouri, compared to last week there was a light test of steer calves under 600 pounds, which were steady to firm. There was a much lighter offering of steers 650 to 800 pounds, and they were $2 to $4 lower. The pot load of steers 892 pounds and pot load of steers 910 pounds were firm to $2 higher. Feeder heifers had the best test on 450-to-600-pound heifers which were firm to $5 higher. Feeder supply included 64% steers and 60% of the offering was over 600 pounds.
Boxed beef closed mixed on light to moderate demand for solid offerings. Choice was $1.47 lower at $287.71 and Select was $2.62 higher at $267.78. The Choice/Select spread is $19.93.
Estimated cattle slaughter is 122,000 head – up 5,000 on the week and up 2,000 on the year.
Lean hog futures ended the day mostly lower on spread adjustments, with additional pressure from long-term demand uncertainties. October lean hogs closed $.17 higher at $90.97 and December lean hogs closed $.55 lower at $82.55.
Cash hogs closed lower with fairly light negotiated purchases. Processors continue to monitor the availability of market-ready barrows and gilts. And with the ample supplies have been able to move their desired numbers without having to bid up. There is some concern about long-term demand for US pork on the global market and domestically, and prices have reflected that. Barrows and gilts at the National Daily Direct closed $.75 lower with a base range of $70 to $72 and a weighted average of $71.26; the Iowa/Minnesota had a weighted average of $71.50; the Western Corn Belt had a weighted average of $71.47. Prices at the Eastern Corn Belt were not reported due to confidentiality.
Butcher hog prices at the Midwest cash markets are steady at $60.
Pork values closed sharply lower – down $4.27 at $108.13. Hams were sharply lower. Bellies, butts, and loins were all lower. Ribs were about steady and picnics were higher. Estimated hog slaughter is 476,000 head – up 5,000 on the week and down 14,000 on the year. Monday’s hog slaughter has been revised to 464,000 head.
