Cattle futures pressured by lower boxed beef
At the Chicago Mercantile Exchange, live and feeder cattle ended the day lower waiting for the week’s direct business to develop with additional pressure from lower boxed beef. October live cattle closed $.50 lower at $142.12 and September feeder cattle closed $1.65 lower at $181.45.
It was a very quiet Tuesday for direct cash cattle business. Packer inquiry was very limited. There were just a handful of deals reported in Iowa at $143 live. Asking prices were around $137 live in the South, while the North was quiet. Significant trade volume will likely be delayed until midweek or later.
At the Joplin Regional Stockyards in Missouri, compared to last week feeder steers were steady to $3 higher. Feeder heifers under 500 pounds were steady to $4 lower with heavier weights $2 to $5 higher. The USDA says supply was moderate to heavy with good demand. Receipts were up on the week and the year. Feeder supply included 49% steers and 56% of the offering was over 600 pounds. Medium and Large 1 feeder steers 600 to 648 pounds brought $183 to $204 and feeder steers 700 to 749 pounds brought $173 to $181.50. Medium and Large 1 feeder heifers 552 to 594 pounds brought $167 to $177.50 and feeder heifers 650 to 699 pounds brought $164 to $174.
Boxed beef closed lower on light demand for moderate offerings. Choice closed $2.14 lower at $268.46 and Select closed $1.35 lower at $241.55. The Choice/Select spread is $26.91. Estimated cattle slaughter is 124,000 head – down 1,000 on the week and up 1,000 on the year.
Lean hog futures closed mixed, adjusting spreads. October lean hogs closed $.60 lower at $96.22 and December lean hogs closed $.02 higher at $87.75.
Cash hog closed sharply higher with solid negotiated runs. Processors were aggressive in their procurement efforts and have been bidding up to move their desired numbers. Demand for US pork on the global market and domestically has been strong, helping provide price support. While that is expected to continue, there are long-term concerns that create additional volatility in the markets. The industry continues to monitor the availability of market-ready hogs. Barrows and gilts at the National Daily Direct closed $5.19 higher with a base range of $110 to $131 and a weighted average of $121.3; the Iowa/Minnesota closed $5.39 higher with a weighted average of $126.80; the Western Corn Belt closed $5.21 higher with a weighted average of $126.62. Prices at the Eastern Corn Belt were not reported due to confidentiality.
Butcher hog prices at the Midwest cash markets are steady at $75. At Illinois, slaughter sow prices were $2 higher with light to moderate demand for light to moderate offerings at $63 to $75. Barrows and gilts were steady with moderate demand for moderate offerings at $77 to $86. Boars ranged from $45 to $55 and $10 to $20.
Pork values closed higher – up $3.32 at $131.02. Bellies ended the day more than $27 higher. Loins and picnics were higher. Butts, hams, and ribs were lower to sharply lower. Estimated hog slaughter 472,000 head – up 5,000 on the week and up 3,000 on the year.