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Hogs, cattle futures lower ahead of Friday’s reports

At the Chicago Mercantile Exchange, cattle futures closed mostly lower in anticipation of Friday’s reports.  The nearby contract did show some strength in light trade volume on position squaring ahead of its expiration.  December live cattle closed $1.07 higher at $119.97 and February live cattle closed $.42 lower at $120.60.  January feeder cattle closed $.10 lower at $147.65 and March feeder cattle closed $.30 lower at $145.25.

Direct cash cattle trade was quiet.  The majority of the day’s activity was limited to the distribution of new showlists.  It looks like the pre-holiday offering is smaller for the most part with only Nebraska up from last week.  It’s assumed trade will want to finish up early ahead of the long holiday weekend – but, trade volume isn’t expected to pick up until at least Wednesday.  And there could be holdouts as they look ahead to Friday’s Cattle on Feed report.

Boxed beef value closed higher on moderate to good demand for moderate offerings.  Select and Choice chuck and round cuts were steady to firm.  Choice ribs were higher.  Choice ended the day $1.28 higher at $203.15 and Select closed $1.76 higher at $185.01.  The Choice/Select spread closed at $18.14.

At the Joplin Regional Stockyards in Missouri, at the opening, compared to last week steer calves are steady to weak and heifer calves were steady to $3.00 higher.  Receipts totaled 4,500 head, up slightly on the week.  The USDA says both demand and supply are moderate.  Feeder supply included 61 percent steers and 40 percent of the offering was over 600 pounds.  Feeder steers, Medium and Large 1’s 500 to 600 pounds are $160.00 to $180.00 and Medium and Large 1’s 600 to 700 pounds are $151.00 to $155.00.  Feeder heifers, Medium and Large 1’s 500 to 600 pounds are $141.00 to $158.00 and Medium and Large 1’s 600 to 700 pounds were $136.00 to $148.00.

Estimated cattle slaughter is 119,000 head, down 1,000 on the week and up 6,000 on the year.

Lean hog futures ended the day lower driven by the negative wholesale values.  Trade volume was light ahead of the holidays and the two reports on Friday.  February lean hogs closed $1.12 lower at $67.40 and April lean hogs closed $.55 lower at $72.25.

Cash hogs closed steady to weak.  The trade continues to watch the availability of market-ready numbers.  Last week’s slaughter total pushed records and added a lot of pork to production when prices are already seasonally soft.  This week’s slaughter totals started off strong and it looks like ample supplies will continue well into the start of 2018.

Barrows and gilts at the Iowa/Southern Minnesota closed $.44 lower with a range of $50.00 to $57.00 and a weighted average of $55.49; the Western Corn Belt closed $.51 lower with a range of $50.00 to $57.00 and a weighted average of $55.41; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.08 lower with a range of $50.00 to $57.87 and a weighted average of $56.05.

Butcher hogs at the Midwest cash markets are steady at $35.00 to $42.00.

At the Interior Missouri Direct, barrows and gilts are steady at $50.00 on light to moderate supply and demand.  Sows are steady to $2.00 lower at $28.00 to $38.00.

At Illinois, slaughter sow prices are steady at $26.00 to $40.00 with moderate demand for moderate offerings.  Barrows and gilts are weaker at $34.00 to $41.00 with moderate demand for moderate offerings.

Pork value closed sharply lower – down $1.71 at $75.86.  The primals were mostly lower and were led down by the large drops in the loin, the picnic, and the ham.

Estimated hog slaughter is 467,000 head – up 3,000 on the week and up 32,000 on the year.

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