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Second consecutive week of no-sales on the Fed Cattle Exchange

On the Chicago Mercantile Exchange, cattle futures closed lower on profit taking as traders turn their attention on the potential supply growth that could be unveiled in Friday’s Cattle on Feed report. Pre-report estimates have all major categories above a year ago.  August live cattle closed down $1.07 at $105.65 and October live cattle closed down $1.55 at $106.17.  The new contract low in December corn provided some support to the feeder cattle market. August feeder cattle ended the day down $.45 at $141.62 and September feeder cattle closed $.15 lower at $141.90.

Direct cash cattle trade is just starting to take shape.  A regional market in Eastern Nebraska picked up a few cattle at $171.00 to $172.00, about $3 to $4 lower than last week’s weighted average basis.  Colorado has also reported some trade today at $107.00, $3 lower than last week. It is quite possible significant trade volume could be delayed until Thursday or later.  The USDA’s Cattle on Feed report comes out Friday.  Asking prices are around $112 to $113 in the South and $178 plus in the North.  Bids have been reported at $106 to $107 live and $171 to $172 dressed.

This week’s Fed Cattle Exchange had 1,067 head with 0 sold.  This is the second consecutive week the Exchange has had zero head sold.

Boxed beef cutout closed lower on light to moderate demand and heavy offerings.  Choice down $.70 at $192.33 and Select down $1.42 at $189.47.

At the Hub City Livestock Auction in South Dakota total receipts were 1559 head down more than 2,000 head from last week.  It was a lighter offering than two weeks ago and the best test on steers 900 to 950 pounds were $3 to $4 lower with some instances of $12 lower.  The best test on heifers 800 to 850 pounds were $4 to $8 higher.  The USDA says there was good to very good demand for the offering of a couple of strings and loads and many packages, which included lots of fall calves and test open heifers. Most of the offering were light to moderate flesh, both off grass and out of feed yards.  Steers made up 52 percent of the supply with 99 percent over 600 pounds.  Medium and Large 1 steers 750 to 800 pounds were $148.00 to $158.00 and Medium and Large 1 steers 900 to 931 pounds were $137.50 and $139.75.  Medium and Large 1 heifers 626 to 643 pounds were $147.00 to $149.50 and Medium and Large 1 heifers 800 to 850 pounds were $136.00 to $142.75.

Estimated cattle slaughter is 116,000 up 1,000 from last week and up 2,000 from a year ago.

Lean hogs hit new lows for the move, but backed away from stronger market pressure.  Contracts are oversold on a technical basis.  And despite continued strong demand the trade is still concerned about the amount of pork entering the market. And contracts’ are still at a deep discount to cash.  October lean hogs closed down $.32 at $63.55 and December lean hogs closed $.20 lower at $58.85.

Cash hogs closed lower.  The market continues to fret over the number of market-ready hogs.

Barrows and gilts at the Iowa/Southern Minnesota were down $.1.55 with a range of $66 to $71 and an average of $69.31; the Western Corn Belt is $1.47 lower with a range of $66 to $71 and an average of $69.27; no comparison in the Eastern Corn Belt but a range of $68.00 to $70.00 and an average of $69.10; and the National Daily Direct was $1.40 lower with a range of $66 to $71 and an average of $69.19.

Butcher hogs at the Midwest cash markets are $2 to $4 lower at $46.00.

At the Interior Missouri Direct receipts were up more than 400 head from last week.  The USDA says both supply and demand are light to moderate.  Barrows and gilts are steady to $2.00 lower at $64.00 to $66.00.  Sows are steady to $2.00 lower at $53.00 to $66.00.

At Illinois, sows are $2.00 lower with moderate demand for heavy offerings at $52.00 to $65.00.  Barrows and gilt prices are weak, with moderate demand for moderate offerings at $43.00 to $51.00.

Pork cutout closed down $1.21 at $87.93.  Demand for bacon continues to tumble and the belly primal is following.  It ended the day down $6.31.

Estimated hog slaughter is 448,000 up 2,000 from last week and up 12,000 from a year ago.

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