Market News

Another round of light, lower direct cattle trade

Chicago Mercantile Exchange live cattle futures were mostly lower, watching direct trade develop, while feeders were up on oversold signals and the mostly lower move in corn. October live cattle were down $.97 at $174.62 and December $.82 lower at $174.27. September feeders were $1.17 higher at $235.67 and October was up $.35 at $231.67.

Direct cash cattle business was light at midweek with slow demand. Activity was reported at $183 on the live basis in Kansas and Texas, steady with Tuesday, but $2 lower than last week. In the north, dressed sales were mostly at $293, down $3 from the week before. Asking prices for what was left on the show list Wednesday were $186 live and $295 dressed with bids reported at $186 live and $295 dressed in Nebraska. Tuesday’s trade was at $183 to $184 live, down $1 to $2, with a dressed sales mostly at $293 to $294, a drop of $4 to $5. One string of dressed cattle did sell at $295 Tuesday.

Boxed beef closed firm with moderate movement. Choice was up $.13 at $315.21 and Select beef was $.04 higher at $301.08 for a spread of $14.13. The estimated cattle slaughter of 122,000 head was unchanged on the week and up 3,194 on the year.

At the Springfield Livestock Marketing Center feeder cattle sale in Missouri, compared to the previous week, steers were mostly $5 to $10 lower, with some spots of $15 lower, while heifers were mostly $2 to $8 lower. The USDA says those week-to-week declines were due to lower futures prices and a less attractive offering. Demand was light to moderate for a moderate supply with receipts up on the week and the year. 47% of the offering were steers and 63% weighed less than 600 pounds. Medium and Large 1 to 2 feeder steers weighing 400 to 500 pounds ranged from $265 to $297 and 500 to 600-pound steers sold at $255 to $279. Medium and Large 1 to 2 feeder heifers weighing 400 to 500 pounds brought $250 to $278 and 500-to-600-pound heifers were reported at $229 to $260.

Lean hog futures were mixed on the steady to lower cash during the session against the higher midday move in pork. October was down $.25 at $76.15 and December was $.22 lower at $67.87.

Cash hogs were steady to sharply lower with moderate closing negotiated sales at the major direct markets. It looks like most buyers have the needed near-term numbers in hand after Tuesday’s solid negotiated movement, but there could always be a slightly firmer undertone later this week if some of those buyers want to secure supplies for early next week. Domestic demand remains largely inconsistent, and the market is waiting to see what shows up in Thursday’s weekly export sales report. The average barrow and gilt weight in the Iowa/Southern Minnesota/South Dakota reporting area for the week ending August 17^th was 281.1 pounds, up one tenth on the week and 2.8 on the year.

National direct barrows and gilts closed $1.20 lower with a base price range of $80 to $84 for a weighted average of $82.06. Iowa/Southern Minnesota was down $.39 at $82.47, the Western Corn Belt was $1.24 lower at $82.09, and the Eastern Corn Belt was down $.10 at $81.88.

The Midwest butcher hog markets at Dorchester, Wisconsin and Garnavillo, Iowa were $3 lower at $66, with Red Oak, Iowa steady at $55. Illinois direct sows were steady at $53 to $65 with moderate demand for moderate to heavy offerings. Barrows and gilts were steady at $48 to $58. Illinois boars ranged from $8 to $28.

Pork closed $2.99 lower at $94.55. Loins, butts, ribs, hams, and bellies were weak to sharply lower, including a $9.88 drop in bellies. Picnics were higher. The estimated hog slaughter of 481,000 head was steady with last week and 16,339 above last year.