Market News

Direct cash cattle trade remains quiet

Chicago Mercantile Exchange live and feeder cattle futures were sharply higher, getting ready for direct business and Friday’s USDA Cattle on Feed report. Feeders had additional support from the lower move in corn. October live was up $1.67 at $179.97 and December was $1.27 higher at $181.12. October feeders were $3.82 higher at $243.77 and November was up $3.22 at $241.35.

Cash cattle country was quiet on Thursday with just a few bids in parts of the North. Asking prices in that area still haven’t been established. In the South, asking prices remain around $184 to $185. Significant trade volume could come sometime on Friday. The USDA says beef export sales of 15,500 tons were up 36% on the week and 2% from the four-week average, mainly to South Korea, China, and Japan.

At Mitchell Livestock Auction in South Dakota, a trend wasn’t established but heavier weight feeder steers and heifers were dollars higher. USDA says light feeder calves that were vaccinated and weaned brought top dollar. Most heavy feeders were in large load lots. Demand was good. Feeder suppl included 39% steers and 89% of the offering was over 600 pounds. Medium and Large 1 feeder steers 878 to 899 pounds brought $243 to $244.50. Medium and Large 1 feeder heifers 856 to 871 pounds sold for $234 to $240.35.

Boxed beef closed lower with Choice down $1.82 at $299.56 and Select down $1.49 at $288.26. The Choice/Select spread was $11.30.

Estimated cattle slaughter was 122,000 head – down 1,000 on the week and down nearly 4,000 on the year.

Lean hogs were mixed, on near-term versus long-term demand expectations ahead of the USDA’s monthly livestock slaughter numbers. October was up $.20 at $82.25 and December $.42 higher at $74.30.

Cash hogs closed steady to higher with light closing negotiated numbers at the major direct markets. It looks like at least some buyers were still in need of near-term market ready supplies. The slaughter pace has dipped this week as buyers try to improve margins in the face of uncertain domestic pork demand, but that’s been partially balanced out by heavier than a year ago average live weights. The USDA’s Quarterly Hogs and Pigs report and the monthly cold storage numbers are out next week.

Barrows and gilts at the National Daily Direct were up $1.39 with a base range of $72 to $79 and weighted average of $76.27. The Iowa/Minnesota had no comparison but a weighted average of $75.74. The Western Corn Belt had no comparison but a weighted average of $75.70. The Eastern Corn Belt was not reported due to confidentiality.

Butcher hogs at the Midwest cash markets were steady at midday with prices for barrows and gilts at $60 in Dorchester, Wisconsin and Garnavillo, Iowa. Sows were steady with a range of $54 to $60. Boars were marked at $17. At Illinois, barrows and gilts were steady at $45 to $55; sows were $2 higher at $55 to $67; boars ranged from $15 to $30.

Pork values closed higher – up $.40 at $94.81.

Estimated hog slaughter was 479,000 head – down 4,000 on the week and down more than 10,000 on the year.