Market News

Cattle mixed ahead of USDA numbers, direct cash trade

Chicago Mercantile Exchange live cattle were mixed, mostly firm, squaring up for Friday’s USDA Cattle on Feed and Inventory numbers and getting ready for the week’s widespread direct cash business. Also, boxed beef has been higher recently, but only modestly higher, dampening some of the enthusiasm. August was down $.05 at $108.90 and October was unchanged at $110.65.

Feeder cattle mixed, mostly firm, on the same factors as the live pit. August was steady at $154.45 and September was up $.12 $154.77.

Direct cash cattle markets remained at a standstill. Asking prices were $114 to $115 on the live basis and $180+ dressed, well above the bids of $108 live and $170 to $173 dressed. Buyers and sellers will continue to monitor the wholesale and futures markets. After last week’s trade, buyers came into the week short bought and the showlist was larger, but not enough to spark a whole lot of interest, aside from a handful of sales Wednesday connected to the Fed Cattle Exchange. Also, feedlot resolve is probably strengthened by the relatively low price of corn. Widespread business will apparently wait until Friday, maybe even after the USDA’s Cattle on Feed and Inventory reports out at 3 Eastern/2 Central.

Boxed beef closed weak on light to moderate demand for moderate to heavy offerings. Choice was down $.31 at $204.49 and Select was $.17 lower at $196.92. The estimated cattle slaughter of 121,000 head was up 1,000 on the week and 7,000 on the year.

At the Mitchell Livestock Auction feeder cattle sale in South Dakota Thursday, steers weighing more than 1,000 pounds were mostly steady and heifers weighing more than 850 pounds were $5 to $10 higher. Other weights of steers and heifers didn’t have an adequate comparison because of a much lighter test. The USDA says demand was good for all types of flesh and quality ranged from attractive to plain. Large 1 feeder steers averaging 1,028 pounds sold at $135.50 and 1,110 to 1,135-pound steers were reported at $123 to $124.35. Medium and Large 1 feeder heifers weighing 800 to 900 pounds ranged from $128.75 to $137.50 and 900 to 1,000-pound heifers brought $124.50 to $136.50.

Lean hog futures were mixed, mostly modestly higher. Technically, contracts are oversold and at a big discount to the cash index, but fundamentally, cash business during the session was steady to lower and while pork was firm at midday, that followed Wednesday’s sharply lower close. Lean hogs had a strong early rally but were unable to follow through. August was up $.05 at $67.25 and October was $.30 higher at $52.22.

Cash hogs were steady to lower, with light closing numbers for the major direct markets. Buyers are successfully saving some money, trying to improve margins, but may have to raise bids if they’re unable to move more numbers, especially if they need supplies for this weekend or early next week. Market ready supplies are expected to start noticeably expanding soon and even if the cutout hasn’t seen its seasonal top yet, that increase in tonnage will make an already uncertain demand outlook even cloudier. The USDA’s next set of cold storage numbers is out Monday afternoon.

Pork closed $.34 higher at $82.69. Loins, butts, hams, and bellies were firm to higher, while picnics were weak and ribs were lower. The estimated hog slaughter of 461,000 head was up 7,000 on the week and 23,000 on the year.

Iowa/Southern Minnesota direct barrows and gilts closed $1.52 lower at $65 to $70.50 for a weighted average of $69.35, the Western Cornbelt was down $1.50 at $65 to $70.50 with an average of $69.27, and national direct business was $1.32 lower at $65 to $72.99 for an average of $69.25. Butcher hogs at the Midwest cash markets were steady at $46 to $47. Illinois direct sows were steady at $27 to $38 on light to moderate demand for moderate to heavy offerings. Barrows and gilts were $1 lower at $42 to $50 on moderate demand and offerings. Boars ranged from $8 to $32.