Market News

Strong move in feeders supports live cattle futures

At the Chicago Mercantile Exchange, live cattle trade was mixed most of the day but finished firm with support from the modestly higher close in the feeders.  October Live Cattle closed $.40 higher at $107.97 and December live cattle closed $.45 higher at $113.40.  Feeder cattle saw added support from Tuesday’s move in corn.  September Feeder Cattle closed $.77 higher at $151.57 and October Feeder Cattle closed $.85 higher at $152.80.

Direct cash cattle trade has been at a standstill.  A few asking prices have been suggested – around $108 in the South and $170.00 to $172.00 plus in the north.  But, the first bids of the week have yet to surface.  Significant trade volume will likely be delayed until the latter part of the week.

Boxed beef cutout closed mixed on light to moderate demand and offerings.  Choice closed $.51 lower at $192.11 and Select closed $1.13 higher at $188.83.

At the Russell Feeder Cattle Auction in Iowa receipts were down from the previous auction.  Feeder steers under 450 pounds were mostly $3.00 to $8.00 higher while steers 450 to 600 pounds were mostly $4.00 to $9.00 lower, and steers over 600 pounds were mostly $5.00 to $8.00 higher.  The USDA says trade was active and demand was good.  Feeder supply included 74 percent steers and 51 percent of the offering was over 600 pounds.  Feeder steers, Medium and Large 1’s 450 to 500 pounds were $181.00 to $196.00 and Medium and Large 1’s 800 to 850 pounds were $153.75 to $159.75.  Feeder heifers, Medium and Large 1’s 350 to 400 pounds were $169.00 to $179.00 and Medium and Large 1’s 450 to 500 pounds were $160.00 to $174.00.

Estimated cattle slaughter is 118,000 head, up 1,000 on the week and 4,000 on the year.

At the Chicago Mercantile Exchange, lean hogs closed higher on contracts’ discount to cash.  October’s gains were limited by spread trade out of that contract and into the more active December contract.  October Lean Hogs closed $.12 higher at $60.12 and December Lean Hogs closed $1.67 higher at $59.72.

Cash hogs closed lower. The trade continues to monitor the availability of market-ready numbers.  Packer margins have been strong – and as long as supply is steady (if Tuesday’s estimates aren’t corrected it was another record daily slaughter total), packers won’t slow chain speed anytime soon.

Barrows at gilts at the Iowa/Southern Minnesota closed $1.06 lower with a range of $47.00 to $52.50 and an average of $51.11; the Western Corn Belt closed $1.06 lower with a range of $47.00 to $52.50 and an average of $51.11; the Eastern Corn Belt had no comparison with a range of $49.00 to $53.00 and an average of $51.00; trade at the National Daily Direct closed $1.05 lower with a range of $47.00 to $53.00 and an average of $51.08.

Butcher hogs at the Midwest cash markets are steady to $1.00 lower at $33.00 to $40.00.

At the Interior Missouri Direct, barrows and gilts are steady to $1.00 lower at $46.00.  The USDA says supply and demand are light to moderate.  Sows are steady to $1.00 higher.  Sows under 500 pounds are $20.00 to $25.00 and sows over 500 pounds are $24.00 to $30.00.

At Illinois, sow prices are weak at $24.00 to $32.00.  The USDA says there is light to moderate demand for heavy offerings.  Barrows and gilts are weak with moderate demand for moderate offerings at $31.00 to $37.00.

Pork cutout closed lower – down $1.77 at $76.32.  Most of the primals were lower – but bellies led the way down $4.12 at $98.53.

Estimated hog slaughter is 455,000 head, up 4,000 on the week and 15,000 on the year.