Market News

Midday cash livestock markets

Direct cash cattle trade activity has likely wrapped up for the week, although we could see some scatter cleanup business this afternoon.  The cash market suffered losses again this week.  There was a moderate live trade in the South yesterday at $100, that’s $2 to $3 lower than last week’s averages.  On Wednesday dressed deals were at mostly $167, another $4 loss from the prior week’s weighted average basis.  There was also some light dressed trade in the North on Thursday at mostly $165.  Boxed beef prices have dropped significantly this week and that could be an indicator that the market could see even more pressure. 

Boxed beef is lower at midday on light demand for moderate offerings.  Choice is $1.26 lower at $228.16 and Select is $1.45 lower at $203.02.  The Choice/Select spread is $25.14. 

At the Mitchell Livestock Auction in South Dakota, receipts were up from two weeks ago and on the year.  Compared to the most recent sale, feeder steers and heifers up to 1,000 pounds were $2 to $4 lower, steers over 1000 pounds were $7 to $8 lower.  Heifers over 1000 pounds were $2 to $4 lower.  There were many good load lots in the offering and the USDA says demand was good.  Feeder supply included 66 percent steers and 97 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 831 to 849 pounds brought $136 to $139.50 and feeder steers 951 to 998 pounds brought $122 to $130.85.  Medium and Large 1 feeder heifers 755 to 795 pounds brought $129.25 to $134.50 and feeder heifers 904 to 947 pounds brought $120.25 to $128. 

Cash hogs opened weak to lower with strong negotiated purchase numbers at midday.  The market remains hopeful that demand for US pork on the global market will see a significant increase, but that has yet to be realized.  With the heavy supplies and the continued large slaughter runs adding more pork to an already saturated market, prices are having a difficult time moving any higher.  Smithfield did cut the hog kill numbers in half at two of their Southeast plants yesterday. These plants will not be operating at all today due to hurricane Dorian passing through these areas. Barrows and gilts at the Iowa/Southern Minnesota opened $.22 for a weighted average of $53.08; the Western Corn Belt opened $.16 lower for an average of $53.08; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct is $.80 lower for a weighted average of $52.43. 

The Midwest cash markets are closed today. 

At Illinois, slaughter sow prices were steady at $19 to $29 with light to moderate demand for moderate offerings.  Barrow and gilt prices were $2 to $3 lower at $30 to $38 with light to moderate demand for moderate offerings.   

Pork values are sharply higher at midday – up $1.82 at $73.78.  All of the primals were higher with the largest gains in the ribs, bellies, and hams.