Market News

Direct cash cattle trade develops Tuesday

Chicago Mercantile Exchange live and feeder cattle futures were mostly modestly higher, with some support from the light direct business during the session. There was periodic pressure from a lower move in the Dow Jones Industrial Average and questions about how much higher cash and wholesale prices can go. June live was up $.02 at $213.67 and August was $.30 higher at $209.37. August feeders were $.30 higher at $299.20 and September was up $.32 at $297.87.

Cash cattle country had some light trade develop in parts of the South at $218 to $220 on a live basis, steady to $2 higher than last week. Sources indicate 1300 head sold in Kansas and 200 head in Texas. The North remains very quiet with no bids or asking prices on the table.

At the Sioux Falls, South Dakota Regional Cattle Auction on Monday, feeder steers and heifers were all selling steady to $5 higher. USDA says there was some very good demand for this seasonal run of cattle. The market was active for all weights. Flesh condition of yearlings was rated moderate to moderate plus. Feeder supply included 60% steers and 91% of the offering was over 600 pounds. Medium and Large 1 feeder steers 819 to 838 pounds brought $297 to $305 and feeder steers 924 to 944 pounds sold for $279 to $286.25. Medium and Large 1 feeder heifers 804 to 816 pounds brought $270 to $276 and feeder heifers 903 to 931 pounds sold for $256 to $262.

Boxed beef closed higher with Choice up $1.10 at $344.67 and Select $4.90 higher at $332.97. The Choice/Select spread is $11.70.

Estimated cattle slaughter was 121,000 head – up a thousand on the week and down more than 2,200 on the year.

Lean hog futures were mixed, adjusting spreads, with ongoing questions about sustained domestic and export demand for pork. Fundamentals were mixed during the session, with cash steady to lower and pork higher at midday. June lean was down $1.42 at $97.57 and July was $1.00 lower at $99.40.

Cash hogs were mixed with solid closing negotiated numbers at the major direct markets. Buyers at the major direct markets had to bid up to secure the numbers needed to keep chain speed moving at a solid pace, with some encouragement from the midday gain in the pork carcass cutout value. However, pork closed lower, reflecting the inconsistency of the domestic wholesale market, and there continues to be a lot of uncertainty about export business.

Barrows and gilts at the National Daily Direct were up $3.62 with a base range of $87 to $96.50. The weighted average price is $93.58. The Western Corn Belt was up $3.48 with a weighted average of $93.57. The Iowa/Minnesota and Eastern Corn Belt were not reported due to confidentiality.

Butcher hogs were mostly lower at the Midwest cash markets in Garnavillo, Iowa and Dorchester, Wisconsin. Barrows and gilts were $3 lower at $63; slaughter sows were down $3 to $4 for a range of $59 to $66; boars were marked at $18.

At Illinois, barrows and gilts were steady with moderate demand for moderate offerings at $50 to $60; sows were steady with moderate demand for light offerings at $39 to $51; boars had a range of $18 to $35.

Pork values closed lower – down $.96 at $95.70. Picnics were higher. All other primal cuts were lower.

Estimated hog slaughter was 485,000 head – down 3,0000 on the week and up nearly 5,500 on the year.