Market News
Cattle futures supported by stronger boxed beef
At the Chicago Mercantile Exchange, live and feeder cattle were up waiting for direct business to develop. Contracts were oversold and there was support by stronger boxed beef prices. October live cattle closed $.72 higher at $180.75 and December live cattle closed $1.35 higher at $180.30. September feeder cattle closed $2.67 higher at $242.17 and October feeders closed $2.20 higher at $239.92.
Direct cash cattle trade activity was quiet again Tuesday. Bids remain elusive. Asking prices were around $187 to $188 live in the South, while the North was quiet. Look for significant trade volume to hold out until the latter half of the week.
At the Callaway Livestock Center in Missouri, feeders sold with a lower undertone, and slaughter cattle were steady. Receipts were up from the previous week and about steady on the year. Feeder supply included 55% steers and 58% of the offering was over 600 pounds. Medium and Large 1 feeder steers 553 to 599 pounds brought $301.50 to $314.50 and feeder steers 652 to 694 pounds brought $265 to $289.50. Medium and Large 1 feeder heifers 558 to 599 pounds brought $274 to $285 and feeder heifers 601 to 647 pounds brought $254.75 to $267.50.
Boxed beef closed higher with good demand for moderate offerings. Choice was $1.10 higher at $316.93 and Select closed $.44 higher at $300.61. The Choice/Select spread is $16.32. Estimated cattle slaughter was 122,000 head – even on the week and down about 4,000 on the year.
Lean hog futures ended the day lower on technical selling as concerns about long-term demand linger. October lean hogs closed $1.47 lower at $72.85 and December lean hogs closed $1.32 lower at $64.75.
Cash hogs closed higher with a fairly large negotiated run. Processors were more aggressive in their procurement efforts Tuesday and bid up to move needed numbers. Demand for U.S. pork on the global market has been strong, helping provide some price support. However, there are concerns about the strength of domestic demand in the long term, and that adds uncertainty to the market. Barrows and gilts at the National Daily Direct closed $.69 higher with a base range of $73 to $86.50 with a weighted average of $83.17; the Iowa/Minnesota was $.24 higher with a weighted average of $83.24; the Western Corn Belt closed $.31 higher with a weighted average of $83.31. The Eastern Corn Belt was not reported due to confidentiality.
Butcher hog prices at the Midwest cash markets were $6 higher in Dorchester, Wisconsin at $66 and steady in Garnavillo, Iowa at $69. At Illinois, slaughter sow prices were $3 higher with moderate demand for moderate offerings at $48 to $50. Barrows and gilts were steady with moderate demand for moderate offerings at $48 to $58. Boars ranged from $18 to $28 and $8 to $15.
Pork values closed about steady – up $.06 at $100.33. Bellies were sharply higher. Ribs were firm. Loins, hams, butts, and picnics were all lower. Estimated hog slaughter was 482,000 head – even on the week and about even on the year.
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