Live cattle were mostly higher on lower corn

Market News

Live cattle were mostly higher on lower corn

At the Chicago Mercantile Exchange, live cattle were mostly higher and feeders were higher watching corn and the direct markets develop.  June live cattle closed $.05 lower at $132.72 and August live cattle closed $.22 lower at $132.75.  August

There was a light to moderate direct cash cattle trade that took place on Tuesday.  Live deals in the South were at $137, about $1 lower than last week’s weighted averages.  Bids were at $138 live and $225 dressed in Nebraska.  Look for more business to develop over the balance of the week.

At the Callaway Livestock Center in Missouri, compared to last week 400 to 500 pound steer calves were $3 to $6 lower, steers 500 to 600 pounds were firm to $3 higher, steers 600 to 650 pounds were $2 to $4 lower and steers over 650 pounds were met with a firm undertone.  Feeder heifers 400 to 500 pounds were mostly steady, 5-weight heifers on comparable sales sold were $3 to $5 higher, and heifers over 600 pounds were not well tested.  The USDA says demand was moderate to good on a heavy supply of top-quality calves and yearlings.  Receipts were up on the week and the year.  Feeder supply included 69% steers and 43% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 500 to 547 pounds brought $195.75 to $209 and feeder steers 600 to 638 pounds brought $184 to $190.25.  Medium and Large 1 feeder heifers 504 to 536 pounds brought $168 to $176 and feeder heifers 550 to 593 pounds brought $157 to $168.50. 

Boxed beef ended the day mixed on light to moderate demand for moderate offerings.  Choice closed $.63 lower at $263.65 and Select closed $1.12 higher at $245.35.  The Choice/Select spread is $18.30. Estimated cattle slaughter is 125,000 head – even on the week and up 3,000 on the year. 

Lean hog futures ended the day lower on profit-taking.  June lean hogs closed $1.35 lower at $109.02 and July lean hogs closed $1.80 lower at $109.05. 

Cash hogs closed mixed with a solid negotiated run.  Demand for US pork on the global market has overall been very strong, helping provide price support.  But there are long-term concerns that create uncertainty in the market.  The industry continues to monitor the availability of market-ready hogs.  And processors are moving their desired numbers without having to get too aggressive in their procurement efforts. Barrows and gilts at the National Daily Direct closed $6.33 higher with a base range of $100 to $116 and a weighted average of $112.58; the Iowa/Minnesota closed $1 lower with a weighted average of $112.46; the Western Corn Belt closed $.16 higher with a weighted average of $112.58.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $70. At Illinois, slaughter sow prices were $1 lower with light demand for light offerings at $47 to $59.  Barrows and gilts were steady with light to moderate demand for light to moderate offerings at $65 to $74.  Boars range from $45 to $50 and $10 to $15. 

Pork values closed higher – up $1.19 at $108.24.  Bellies, ribs, and hams were higher to sharply higher.  Picnics were about steady.  Butts and loins were lower. Estimated hog slaughter is 473,000 head – down 4,000 on the week and down 9,000 on the year.  Monday’s hog slaughter has been revised to 464,000 head.