Market News

Boxed beef declines as cattle futures gain ground

Chicago Mercantile Exchange live cattle futures were up and feeders were mostly higher, preparing for widespread direct business and Friday’s USDA Cattle on Feed report. October live cattle was $.77 higher at $218.00 and December was up $1.12 at $218.27. September feeders were $.20 lower at $328.92 and October was $.65 higher at $322.70.

Direct cash cattle trade activity remains sluggish. Bids have started to resurface in the fed cash cattle market as packers are offering $355 to $356 dressed and $225 live in Nebraska and Kansas. Some moderate business took place on Wednesday, but otherwise the market has yet to trade any cattle in the South.

At the Bassett Livestock Auction in Nebraska, market activity showed moderate to good demand with active internet bidding. Receipts were up sharply from the most recent sale, but lower from last year. Feeder supply included 45% steers and 96% of the offering was over 600 pounds. Medium and Large 1 feeder steers 901 to 936 pounds brought $338.50 to $340. Medium and Large 1 feeder heifers 702 to 744 pounds sold for $333.50 to $335.

Boxed beef closed lower with Choice down $5.06 at $389.93 and Select down $.43 at $363.74. The Choice/Select spread was $26.19.

Estimated cattle slaughter was 103,000 head – down 3,000 on the week and down nearly 15,000 on the year.

Lean hog futures were mixed on spread trade, along with the recent inconsistencies in cash and wholesale activity. October was $1.27 lower at $80.22 and December was down $.67 at $70.75.

Cash hogs were mixed, with light closing negotiated movement at the major direct markets. There was some limited late week support from buyers trying to round up the remaining ready numbers to fill out the schedule, but the bulk seem to have the needed supplies on hand. Market ready numbers are ample, keeping buyers in the driver’s seat, and this week’s slaughter is on pace to fall below last week as those buyers try to maintain their margins amid inconsistent wholesale business.

Barrows and gilts at the National Daily Direct closed $.24 higher with a base range of $90 to $96.50. The Iowa/Minnesota was down $1.20 at $90.92. The Western Corn Belt was $1.18 lower at $90.92. The Eastern Corn Belt was not reported.

Butcher hog prices at the Midwest cash markets are steady. Barrows and gilts in Dorchester, Wisconsin were priced at $66. Illinois slaughter sows are steady with moderate demand for light offerings at $43 to $55.

Pork values were down $1.09 at $96.49. Loins and butts were higher. Picnics, ribs, hams, and bellies were lower.

Estimated hog slaughter was 451,000 head – down 23,000 on the week and down 20,000 on the year.