Cattle futures supported by the lower move in corn
At the Chicago Mercantile Exchange, live and feeder cattle ended the day higher ahead of the week’s direct cash business and the higher boxed beef at midday. Feeders were in the lead on the lower move in corn. August live cattle closed $.10 higher at $135.72 and October lives closed $.50 higher at $141.10. August feeder cattle closed $2.07 higher at $178.75 and September feeders closed $2.37 higher at $181.80.
A light direct cash cattle trade took place on Tuesday. Live deals in Texas were at $136, about $.50 higher than last week’s weighted averages. There was also some scattered trade reported in parts of Iowa, but not near enough to establish a trend. Early asking prices were noted at $139-plus live in the South, while nothing surfaced out of the North. Look for more business to develop over the balance of the week.
At the Callaway Livestock Center in Missouri, compared to last week feeder steers 400 to 750 pounds sold $3 to $7 lower. There were three pot-loads of yearling steers of similar weights and similar quality weighing 845 to 905 pounds were $7 to $15 lower when compared to last week’s offerings. Feeder heifers 400 to 600 pounds were firm to $3 higher with 6-weight heifers mostly steady. The USDA says demand was moderate to good with the best demand on 400 to 700 pounds steers and 400-to-650-pound heifers. Receipts were down on the week and the year. Feeder supply included 60% steers and 56% of the offering was over 600 pounds. Medium and Large 1 feeder steers 508 to 547 pounds brought $200 to $214.50 and feeder steers 604 to 646 pounds brought $198 to $204.50. Medium and Large 1 feeder heifer 554 to 566 pounds brought $180 to $189 and feeder heifers 617 to 625 pounds brought $173 to $177.
Boxed beef closed higher with solid demand for moderate offerings. Choice is $2.02 higher at $272.57 and Select closed $1.07 higher at $243.73. The Choice/Select spread is $28.84. Estimated cattle slaughter 125,000 head – down 1,000 on the week and up 8,000 on the year.
Lean hog futures ended the day mixed, adjusting spreads. While there continues to be strong demand there are long-term demand concerns. August lean hogs closed $.70 higher at $112.82 and October lean hogs closed $.12 higher at $94.50.
Cash hogs closed sharply higher with a solid negotiated run. The industry continues to monitor the availability of market-ready hogs. Processors bid up to move their desired numbers to start the day and were more aggressive in their procurement efforts. Demand for US pork on the global market and domestically has been strong, which helps provide price support. Barrows and gilts at the National Daily Direct closed $8.03 higher with a base range of $108 to $128 and a weighted average of $120.50; the Iowa/Minnesota had no comparison but a weighted average of $123.74; the Western Corn Belt had no comparison but a weighted average of $123.53; the Eastern Corn Belt had no comparison but a weighted average of $120.20.
Butcher hog prices at the Midwest cash markets are steady at $80. At Illinois, slaughter sow prices were $3 higher with moderate demand for moderate to heavy offerings at $48 to $60. Barrows and gilts were steady with moderate demand for moderate offerings at $74 to $83. Boars ranged from $45 to $50 and $10 to $15.
Pork values closed higher – up $3.16 at $125.12. Hams, bellies, and butts were sharply higher. Picnics and ribs were firm to higher. Loins were lower. Estimated hog slaughter is 460,000 head – up 9,000 on the week and down 8,000 on the year.