Market News

Cattle futures up on technical support, midday beef

Chicago Mercantile Exchange live and feeder cattle futures were supported by the higher midday boxed beef and technical support, getting ready for direct business. October live was up $2.42 at $179.40 and December was $2.47 higher at $178.85. September feeders were $.57 higher at $241.92 and October was up $.90 at $238.37.

Direct cash cattle markets remained at a standstill. Bids and asking prices were unreported and this week’s show list looks at least somewhat larger in all the major feeding areas. Early expectations are for another round of lower direct business this week as sellers try to move cattle out of feedlots. A significant portion of last week’s trade was for delayed delivery, which could limit this week’s demand to some extent. High heat in parts of the region is a near-term concern.

At the Ozarks Regional Stockyards feeder cattle sale in West Plains, Missouri, compared to the previous week, steers and heifers were $3 to $6 higher, while steer calves were $3 lower to $3 higher and heifer calves were $2 to $4 higher. The USDA says demand was good for a light supply, likely impacted by hot temperatures, with most of the offering small drafts of calves. Receipts were down on the week and the year. 53% of the offering were steers and 52% of all feeder cattle weighed less than 600 pounds. Medium and Large 1 feeder steers weighing 750 to 850 pounds ranged from $230 to $252.50 and Medium and Large 1 to 2 steers weighing 650 to 750 pounds brought $228 to $242. Medium and Large 1 feeder heifers weighing 500 to 600 pounds sold at $248 to $262 and Medium and Large 1 to 2 heifers weighing 400 to 500 pounds were reported at $246 to $275.

Boxed beef closed mixed with moderate movement. Choice was down $3.93 at $311.97 and Select beef up $.03 at $300.25 for a spread of $11.72. The estimated cattle slaughter of 121,000 head was down 3,000 on the week and 5,547 on the year.

Lean hog futures were up on oversold signals, gaining despite the slow cash and nearly unchanged midday pork. The most active contracts found additional support from their discount to the cash index. October was $1.67 higher at $82.07 and December was up $.95 at $71.65.

Cash hogs were steady to lower with moderate closing negotiated numbers at the major direct markets. Buyers were need of some near-term supplies after the slow start to the week, however, interest has held in check by the ample market ready numbers and the ongoing uncertainties about sustained domestic demand ahead of the last official grilling holiday of summer. The wholesale market did see some gains Tuesday, but buyers will probably want to see more signs of solid demand before really committing to higher bids.

National direct barrows and gilts closed $.62 lower with a base price range of $75 to $81 for a weighted average of $79.55, while Iowa/Southern Minnesota was down $.52 at $79.41 and the Western Corn Belt was $.41 lower at $79.51. The butcher hog markets in Dorchester, Wisconsin and Garnavillo, Iowa were steady at $66. Illinois direct sows were steady at $53 to $65 on moderate demand for heavy offerings. Barrows and gilts were steady at $47 to $57 with moderate demand and offerings. Boars ranged from $8 to $28.

Pork closed $1.07 higher at $96.05. Loins, butts, picnics, hams, and bellies were modestly to sharply higher, while ribs were lower. The estimated hog slaughter of 479,000 head was down 3,000 on the week, but up 1,104 on the year. Monday’s slaughter was revised to 479,000 head, 5,000 less than the initial projection.