Market News

Midday cash livestock markets

Direct cash cattle trade activity is quiet, typical for a Monday.  Buyers and sellers are busy preparing for the week ahead.  Bids and asking prices haven’t surfaced.  Significant trade volume will likely be delayed until at least midweek or later.  Last week, business started early and had wide ranges.  Dressed deals in the North had a full range of $392 to $405, mostly $400, which was $14 higher than the previous week’s weighted average basis.  Live deals in the South ranged from $250 to $256, mostly $255 to $256, $9 to $10 higher than the prior week’s business. 

Boxed beef was sharply higher at midday with solid demand for moderate offerings.  Choice was up $2.54 at $391.65 and Select was $1.83 higher at $388.88.  The Choice/Select spread is $2.77. 

In Iowa last week, steers weighing less than 700 pounds were $10 to $15 higher and steers weighing more than 700 pounds were $5 to $10 higher.  Heifers weighing less than 600 pounds were $20 higher and heifers weighing more than 600 pounds were steady to $10 higher.  Slaughter steers were $5 higher and heifers were $11 higher.  The USDA says demand was mostly good throughout the week.  Receipts were down on the week, but up on the year.  Feeder supply included 51 percent steers with 57 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 600 to 641 pounds brought $444 to $485 and feeder steers 850 to 896 pounds brought $352.50 to $373.75.  Medium and Large 1 feeder heifers 600 to 646 pounds brought $372.50 to $423 and feeder heifers 811 to 845 pounds brought $332.25 to $341.75. 

Cash hog prices were not reported at midday, there were just a handful of negotiated purchases.  Supplies of market-ready hogs remain ample and processors have leverage and can do business at their pace.  Demand remains crucial to the overall price picture, and while there have been some bright spots when it comes to global demand for US pork, there are long-term concerns that linger about its strength.  Summer grilling season is just around the corner, and that could provide an opportunity as pork remains a competitively priced protein in the retail space. The five-day rolling average for barrows and gilts at the National Daily Direct is $92.74; it’s $92.68 for the Iowa/Minnesota; and it’s $93.18 for the Western Corn Belt. 

Butcher hog prices at the Midwest cash markets are $2 higher than last week at $64.

Pork values were higher at midday, up $.35 at $97.94.  Ribs and butts were both sharply higher.  Bellies and picnics were up.  Hams were down just a penny and loins were sharply lower.