Market News

Light cash cattle business develops Thursday

Chicago Mercantile Exchange live and feeder cattle futures were sharply lower, pressured by the week to date’s light, lower direct trade. October live was down $1.97 at $177.25 and December was $2.17 lower at $176.72. October feeders were $2.87 lower at $234.57 and November was down $3.50 at $231.67.

Direct cash cattle trade picked up on Thursday with some light trade reported in parts of Kansas and Texas at $181, $1 higher than Wednesday, but $2 lower than last week’s weighted average. Some scattered deals are also being reported in parts of Nebraska at $288 on a dressed basis, $2 lower than the previous week.

At Mitchell Livestock Auction in South Dakota on Thursday, feeder steers sold on an undertone of steady to slightly higher while heifers were mostly steady. Heavier weight heifers were $5 lower. USDA says most lots sold in larger groups with good demand. Feeder supply included 73% heifers and 95% of the offering was over 600 pounds. Medium and Large 1 feeder steers 775 pounds brought $242.75 and feeder steers 906 to 920 pounds sold for $224.50 to $229.50. Medium and Large 1 feeder heifers 866 to 897 pounds brought $215.50 to $229 and feeder heifers 954 to 994 pounds sold for $207 to $208.

Boxed beef closed lower with Choice down $.09 at $311.51 and Select down $2.61 at $296.78. The Choice/Select spread was $14.73.

Estimated cattle slaughter was 124,000 head – up 1,000 on the week and down nearly 4,000 on the year.

Lean hog futures were mostly lower, with the most active months down on cash and wholesale pressure. Losses were limited by those contracts’ discount to the cash index. October was down $.87 at $80.70 and December was $.65 lower at $72.05.

Cash hogs were steady to mostly lower with moderate closing negotiated numbers at the major direct markets. The industry continues to monitor the availability of market-ready hogs and hog weights. Buyers were able to secure the needed end of the week supplies without much resistance, using the weak midday pork and questions about domestic demand for leverage, even as export demand continues to be strong. The USDA’s weekly export sales numbers are out Friday morning, delayed by Labor Day.

Barrows and gilts at the National Daily Direct were down $.83 with a base range of $74 to $82 and weighted average of $77.84. The Iowa/Minnesota was up $.12 with a weighted average of $77.88. The Western Corn Belt was down $.91 with a weighted average of $77.75. The Eastern Corn Belt was down $.09 with a weighted average of $78.73.

Butcher hog prices at the Midwest cash markets are steady at $60 in Dorchester, Wisconsin and Garnavillo, Iowa and lower in Red Oak, Iowa at $52.

Pork values closed lower – down $.42 at $94.87.

Estimated hog slaughter was 485,000 head – unchanged on the week and up more than 20,000 on the year.