Market News

Live cattle higher on wholesale support

At the Chicago Mercantile Exchange, live cattle futures ended the day higher on strength in wholesale values.  Feeder cattle were mostly lower on commercial spread trade.  August live cattle closed $.77 higher at $107.95 and October contracts closed $.57 higher at $108.72.  August feeder cattle closed $.27 higher at $148.92 and September feeder cattle closed $.22 higher at $148.67.

Direct cash cattle trade is quiet – with bids and asking prices poorly defined.  However, there are a few starter bids in parts of the North at $173.  Not a lot in terms of asking prices – but best guess is live cattle will start around $114 or more.  The Fed Cattle Exchange has an offering of just 488 head.  Significant trade volume isn’t likely to develop until later in the week.

At the close, at the Oklahoma National Stockyards, receipts are up on the week and down on the year.  Compared to last week feeder steers are $3 to $5 lower and feeder heifers were $1 to $6 lower.  Steer and heifer calves are mostly $3 to $5 lower on a limited test.  The USDA says quality was plain to average with a few attractive lots.   Demand was moderate to good.  Feeder supply included 63 percent steers and 64 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 500 to 600 pounds brought $160.50 to $173 and feeder steers 800 to 800 pounds were $145 to $154.  Medium and Large 1 feeder heifers 500 to 600 pounds brought $146 to $156 and feeder heifers 700 to 800 pounds were $127 to $144.50.

Boxed beef cutout values closed sharply higher on moderate to good demand and light to moderate offerings.  Choice up $1.21 at $209.64 and Select up $1.61 at $201.27.  The Choice/Select spread is $8.37.  Estimated cattle slaughter is 119,000 head – even on the week and up 2,000 on the year.

Lean hog futures closed mostly on higher spread trade out of the now expired August and contracts are at a discount to cash. However, fundamentals are negative, and supplies are ample which could keep the market from acquiring any momentum.  August lean hogs closed $.52 lower at $55.00 and October contracts closed $.20 higher at $51.85.

Cash hogs closed lower.  The market continues its path of destruction.  The hog supply is ample, and the demand picture is uncertain.  That combination is doing nothing to help the market settle.  Any further disruption would be even more detrimental to producers.  Barrows and gilts at the Iowa/Southern Minnesota closed $.87 lower with a range of $42 to $44 for a weighted average of $42.76; the Western Corn Belt closed $.89 lower with a range of $40 to $44 for a weighted average of $42.73; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $1.04 lower with a range of $40 to $44 for a weighted average of $42.69.

Butcher hogs at the Midwest cash markets are steady at $36.  At Illinois, slaughter sow receipts are down on the week and even on the year.  Prices are steady at $20 to $32 with light to moderate demand for moderate offerings.  Barrows and gilts are $2 lower at $20 to $32 with light to moderate demand for moderate offerings.

Pork value closed sharply lower – down $1.27 at $69.74.  The primals were mixed with sharp declines in the bellies, loins and the picnics while the ribs, hams, and butts were all higher.  Estimated hog slaughter is 468,000 head – up 15,000 on the week and 20,000 on the year.

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