Market News

Live cattle down, feeders mixed ahead of direct trade

Chicago Mercantile Exchange cattle futures were lower and feeders were mixed, continuing to get ready for the week’s direct business. October live was down $.77 at $178.62 and December was $1.07 lower at $177.77. September feeders were $.62 lower at $241.30 and October was $.20 higher at $238.57.

Direct cash cattle markets remained at a standstill. The USDA did report some very light business at $184 live and $290 dressed, but not nearly enough to establish a trend. There were no reported bids or asking prices and it looks like widespread activity will wait until at least Thursday, if not Friday. Demand has been light in most of the major feeding areas, partially due to generally hot, dry weather and last week’s significant purchases for delayed delivery. Expectations are for another round of lower direct business this week as sellers try to move cattle out of feedlots to make room for the recent increase in placements.

At the Hub City Livestock Auction feeder cattle sale in South Dakota, compared to the previous week, the best test was on heavyweight steers, which were $2 to $5 higher in a narrow comparison. The USDA says the market was active with good to very good demand for a light yearling offering, with fewer grass-fed cattle, but also less overall flesh. Load quality was mostly attractive, while package quality ranged from plain to attractive. There were quite a few tested open heifers ahead of PG season. 75% of the run were steers and the entire offering weighed more than 600 pounds. Medium and Large 1 feeder steers weighing 900 to 980 pounds sold at $233.75 to $244 and Large 1 steers weighing 1,000 to 1,030 pounds were reported at $227.50 to $231.50. Medium and Large 1 heifers averaging 726 pounds ranged from $253 to $257 and heifers averaging 848 pounds brought $242.50.

Boxed beef closed sharply lower with moderate movement. Choice was down $4.68 at $307.29 and Select beef was $2.62 lower at $297.63 for a spread of $9.66. The estimated cattle slaughter of 120,000 head was down 2,000 on the week and 3,383 on the year. Tuesday’s slaughter was revised to 118,000 head, 3,000 less than the original estimate.

Lean hog futures were mixed, mostly modestly higher, on spread trade and the firm midday move in pork. October was down $.40 at $81.67 and December was up $.27 at $71.92.

Cash hogs were steady to lower with light closing negotiated numbers at the major direct markets. It was an unusually quiet day for those major direct markets, which opened with 0 negotiated sales and only added a few thousand as the day progressed. Buyers just have not been all that aggressive this week with inconsistent domestic demand and an eye on next week’s holiday. The average barrow and gilt weight in the Iowa/Southern Minnesota/South Dakota reporting region for the week ending August 24^th was 282.5 pounds, up 1.4 on the week and 8.2 on the year.

National direct barrows and gilts closed $1.80 lower with a base price range of $76 to $80.50 for a weighted average of $77.75, with Iowa/Southern Minnesota down $2.06 at $77.35 and the Western Corn Belt $1.76 lower at $77.75. 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 and offerings. Barrows and gilts were $2 lower at $45 to $55 also on moderate demand for moderate offerings. Boars ranged from $8 to $28.

Pork closed $.77 lower at $95.28. Loins, butts, picnics, and bellies were weak to sharply lower, canceling out gains in ribs and hams. The estimated hog slaughter of 483,000 head was up 2,000 on the week and 7,281 on the year.