Market News

Live cattle mixed, waiting on direct business to develop

At the Chicago Mercantile Exchange, live cattle were mixed, watching direct business, and feeders were lower on the higher move in corn.  October lives closed $.05 lower at $179.22 and Select closed $.05 higher at $178.90.  October feeders closed $1.87 lower at $237.45 and November feeders closed $1.45 lower at $235.17.

Direct cash cattle trade activity was quiet again Wednesday.  Bids and asking prices weren’t established.  Significant trade volume could hold out until sometime Thursday or Friday.  Showlists this week are mixed – higher in Nebraska/Colorado, but lower in Kansas and Texas. 

At the Ozarks Regional Stockyards in Missouri, feeder steers and heifers were steady to $3 higher.  Steer and heifer calves under 700 pounds were steady to $5 higher.  The USDA says demand was good on a light supply.  There were several pot-loads of yearling heifers in the offering.  Receipts were up on the week, but down on the year.  Feeder supply included 41% steers and 50% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 605 to 638 pounds brought $260 to $285 and feeder steers 872 to 887 pounds brought $227 to $233.  Medium and Large 1 feeder heifers 654 to 695 pounds brought $234 to $238 and feeder heifers 704 to 737 pounds brought $229.50 to $239.75.   

Boxed beef closed mixed with light to moderate demand for heavy offerings.  Choice was $.93 higher at $311.60 and Select closed $.72 lower at $299.39.  The Choice/Select spread is $12.21. Estimated cattle slaughter was 125,000 head – up 5,000 on the week and down about 3,500 on the year.

Lean hog futures ended the day mixed as domestic demand uncertainty lingers.  October lean hogs closed $.95 lower at $81.57 and December lean hogs closed $1.10 lower at $72.70. 

Cash hogs closed modestly lower with a big negotiated run.  Demand for U.S. pork on the global market continues to be a bright spot, providing some price support.  There are concerns surrounding long-term domestic demand.  Hog weights dropped back again this week to 280.7 pounds, which is down nearly 2 pounds on the week, but it is still five pounds above year-ago levels.  The industry continues to monitor the availability of market-ready hogs. Barrows and gilts at the National Daily Direct closed $.23 lower with a base range of $70 to $80.50 and a weighted average of $78.67; the Iowa/Minnesota closed $1.25 lower with a weighted average of $77.76; the Western Corn Belt closed $.34 lower with a weighted average of $78.66; the Eastern Corn Belt had no comparison but a weighted average of $78.82.

Butcher hog prices at the Midwest cash markets are steady at $60, following the $6 decline on Tuesday. At Illinois, slaughter sow prices were steady with moderate demand for heavy offerings at $51 to $63.  Barrows and gilts were steady with moderate demand for moderate offerings at $45 to $55.  Boars ranged from $18 to $28 and $8 to $15. 

Pork closed sharply lower – down $3.53 at $96.29. Belles dropped more than $10.  Loins were also sharply lower.  Hams, butts, and picnics were lower.  Ribs were firm. Estimated hog slaughter was 485,000 head – up 12,000 on the week and up about 6,000 on the year.