Market News

More cash cattle trade develops Wednesday

Chicago Mercantile Exchange live and feeder cattle futures closed lower on technical selling, waiting for direct cash business to get established in the north. June live cattle were down $1.15 at $212.52 and August was $1.00 lower at $208.37. August feeders were $.60 lower at $298.60 and September was down $.55 at $297.32.

Cash cattle country had some light scattered business reported in parts of Kansas and Texas Wednesday, fully steady with deals that took place on Tuesday. Sales were reported at $219 on a live basis with approximately 900 head on the move. Asking prices are around $220-plus in the South, but still not fully established in the North. More trade could develop as the week progresses.

At the Russell Livestock Feeder Cattle Auction in Iowa this week, feeder steers sold mostly even to sharply higher compared to the most recent sale. Heifers less than 500 pounds were sharply higher with heavier weights up to $28 lower. USDA says demand was good for a heavy supply. Feeder supply included 50% steers and 43% of the offering was over 600 pounds. Medium and Large 1 feeder steers 601 to 641 pounds brought $359.50 to $391.50. Medium and Large 1 feeder heifers 500 to 549 pounds sold for $344 to $367.

Boxed beef closed higher with Choice up $1.48 at $346.15 and Select $1.03 higher at $334. The Choice/Select spread is $12.15.

Estimated cattle slaughter was 119,000 head – down 2,000 on the week and down nearly 3,000 on the year.

Lean hog futures were mixed, mostly modestly lower, with questions about domestic and export demand for pork. June lean down $.25 at $97.32 and July was up $.07 at $99.47.

Cash hogs were mixed with moderate closing negotiated numbers at the major direct markets. Buyers at the major direct markets were able to cut back spending a little while still moving the needed near-term numbers. The cutout value was up at midday, but closed lower, reflecting the inconsistent domestic wholesale demand, and while the U.S. and China are set to talk trade this weekend, any quick resolution to the tariff situation is unlikely. The average barrow and gilt weight in the Iowa/Southern Minnesota/South Dakota reporting area last week was 290.5 pounds, down 1.1 from the previous week, but up 2.4 from a year ago.

Barrows and gilts at the National Daily Direct were down $.56 with a base range of $87 to $96.75. The weighted average is $93.02. The Iowa/Minnesota is down $.23 with a weighted average of $93.34. The Western Corn Belt is down $.40 with a weighted average of $93.17. The Eastern Corn Belt was not reported due to confidentiality.

Butcher hogs are steady at the Midwest cash markets. Barrows and gilts are priced at $63; sows have a range of $59 to $66; boars are marked at $18.

At Illinois, barrows are gilts are $2 higher at $52 to $62; sows are up $1 at $40 to $52; boars have a range of $18 to $35.

Pork values were lower at the close – down $.16 at $95.54. Loins, butts, and ribs were higher. Picnics, hams, and bellies were lower.

Estimated hog slaughter was 471,000 head – down 10,000 on the week and down more than 3,500 on the year.