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Cattle futures up on beef demand ahead of direct business

 

Chicago Mercantile Exchange live cattle futures were sharply higher on the midday boxed beef strength and technical buying, with traders getting ready for direct cash business. February was $1.62 higher at $129.27 and April was up $2.02 at $127.25.

Feeder cattle were sharply higher, supported by the higher wholesale trade, technical buying, and position squaring ahead of widespread direct cash trade. March was up $1.65 at $149.82 and April was $1.87 higher at $152.30.

Direct cash cattle markets were at a standstill. Asking prices were $128 to $130 on the live basis and $205 dressed, with bids of $124 live and $198 dressed. Given the reluctance of packers to raise, or in some cases even issue, bids, widespread business will wait until Friday. The USDA says weekly beef exports were 10,400 tons, down 44% on the week.

Boxed beef closed higher on moderate demand and offerings. Choice was up $1.23 at $209.04 and Select was $1.63 higher at $205.14. The estimated cattle slaughter of 118,000 head was unchanged on the week and up 19,000 on the year.

At the Farmington Livestock Auction feeder cattle sale in Missouri, compared to the previous week, steers and heifers were $2 to $7 higher. The USDA says demand was good for a heavy supply. 93% of the weekly run were feeder cattle, 53% of those were steers, and 53% of the total offering weighed more than 600 pounds. Medium and Large 1 feeder steers weighing 500 to 600 pounds were reported at $165 to $189 and 600 to 700 pound steers ranged from $150 to $171.75. Medium and Large 1 feeder heifers weighing 500 to 600 pounds sold at $140 to $157 and 600 to 700 pound heifers brought $135 to $152.

Lean hog futures were lower on profit taking, the steady to lower cash trend, and the weak midday pork. Trade volume was light and new front month April is at a discount to the cash index. April was $.92 lower at $69.72 and May was down $.52 at $75.90.

Cash hogs were steady to lower. Buyers were able to continue their efforts to spend less money and improve their margins. Estimates for Saturday’s kill have climbed to around 86,000 head. There’s a lot of pork on the market, but export demand continues to be a highlight, most weeks. Weekly sales were 21,300 tons, up 68% from the previous week, with Mexico the big buyer, followed by Japan.

Pork closed $.53 lower at $76.99. Hams were up $2.10, while the other primal cuts were weak to sharply lower. The estimated hog slaughter of 462,000 head was down 3,000 on the week, but up 72,000 on the year.

Iowa/Southern Minnesota direct barrows and gilts closed $1.48 lower at $60 to $67 for a weighted average of $65.54, the Western Cornbelt was down $1.47 at $60 to $67 with an average of $65.51, and national direct business was $1.00 lower at $60 to $67 for an average of $65.79. Butcher hogs at the Midwest cash markets were steady at $43 to $50. Missouri direct butchers were steady to $1 lower at $64 to $65 on light to moderate supply and demand. Sows were steady to $1 higher at $40 to $54. Illinois direct sows were steady at $46 to $60 on moderate demand for moderate offerings. Barrows and gilts were $1 lower at $42 to $48 on moderate demand for moderate offerings. Boars ranged from $10 to $35.

 

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