Cattle futures supported by lower move in corn
At the Chicago Mercantile Exchange, live and feeder cattle ended the day higher, with feeders in the lead on the lower corn. August live cattle closed $2.52 higher at $132.90 and August feeder cattle closed $4.60 higher at $169.72.
There was another round of light to moderate direct cash cattle trade on Tuesday. Deals in Kansas were at mostly $135 live, with a few at $136. That’s $2 lower than last week’s weighted averages, but steady with the week’s decline. Some scattered trade was reported in Nebraska at $138 live and mostly $222 dressed, and some at $222.50. Look for more business to pick up over the balance of the week. Today’s Fed Cattle Exchange was a non-starter with 1,979 head offered with just 70 head sold ranging from $128 to $138.
At the Kingsville Livestock Auction in Missouri, compared to last week, steers were steady and heifers were firm to $5 higher. The USDA says demand was good for a moderate supply that included a nice mix of both calves and yearlings. There were also a couple of multi-load lots offered. Receipts were down on the week and up on the year. Feeder supply included 47% steers and 55% of the offering was over 600 pounds. Medium and Large 1 feeder steers 600 to 637 pounds brought $181 to $186 and feeder steers 871 pounds brought $152.10. Medium and Large 1 feeder heifers 551 to 5654 pounds brought $156.75 to $168 and feeder heifer 767 pounds brought $151.50.
Boxed beef closed mixed with light to moderate demand for moderate offerings. Choice closed $.12 lower at $267.42 and Select closed $.26 higher at $248.91. The Choice/Select spread is $18.51. Estimated cattle slaughter 125,000 head – even on the week and up 17,000 on the year.
Lean hog futures ended the day mostly higher on spread trade with some additional support on the higher cash and wholesale business. July lean hogs closed $4.42 higher at $112.42 and August lean hogs closed $2.50 higher at $108.92.
Cash hogs closed sharply higher with a big negotiated run. Processors were more aggressive in their procurement efforts and bid up do move their desired numbers. The industry is also watching the availability of market-ready hogs. Demand for US pork on the global market has been strong, helping to provide price support. Barrows and gilts at the National Daily Direct closed $4.10 higher with a base range of $100 to $119.50 and a weighted average of $115.68; the Iowa/Minnesota closed $2.26 higher with a weighted average of $116.35; the Western Corn Belt closed $2.69 higher with a weighted average of $116.68. Prices at the Eastern Corn Belt were not reported due to confidentiality.
Butcher hog prices at the Midwest cash markets were steady at $70. At Illinois, slaughter sow prices were $2 lower with light demand for light offerings at $41 to $53. Barrows and gilt prices were steady with light demand for light to moderate offerings at $65 to $74. Boars ranged from $45 to $50 and $10 to $15.
Pork values closed higher – up $2.31 at $110.02. Bellies were sharply higher. Hams, picnics, and butts were higher. Loins and ribs were lower to sharply lower. Estimated hog slaughter is 477,000 head – up 5,000 on the week and up 31,000 on the year. Tuesday’s hog slaughter has been revised to 467,000 head.