Market News

Midday cash livestock markets

Direct cash cattle markets are at a standstill. The big feature, as usual for Monday, has been the distribution of this week’s new direct cash showlist. Direct business Friday was reported as generally light, mostly at $111 live in the South, steady with the previous week’s weighted average, and $173 to $175 dressed in the North. Thursday’s business was light to moderate, mainly in the North, mostly at $175 dressed. USDA’s Cold Storage report is out this afternoon at 3 Eastern/2 Central, with Allendale projecting beef stocks at 481 million pounds, compared to the five-year average of 440 million, because of higher production levels, trade tensions, and beef losing at least some domestic ground to pork and poultry. Friday’s Cattle on Feed numbers were bearish.

Boxed at midday was higher with light movement. Choice was up $1.45 at $206.25 and Select is $.76 higher at $195.47.

Last week in South Dakota, the USDA says yearling feeder steers were steady to $3 higher, with instances of $6 to $7 gains on 900 to 950 pounders, while yearling feeder heifers were steady to $2 higher, with very good demand for yearlings. Spring calves were too lightly tested for an accurate comparison, but demand was good for those on offer. Medium and Large 1 feeder steers weighing 500 to 600 pounds averaged $172.86 with 800 to 900-pound steers at $155.97. Medium and Large 1 feeder heifers weighing 500 to 600 pounds averaged $154.10 and 800 to 900-pound heifers at $145.14.

Cash hogs are sharply higher, but with a quiet start to the week at the major direct markets. Buyers are expected to continue their efforts to keep chain speed at a high level, but supplies are growing as the southeast fully comes back online following Florence. Allendale expects pork stocks at the end of August to be 556 million pounds, compared to the five-year average of 586 million, with strong consumer demand helping to ease some of the supply bearishness. Quarterly Hogs and Pigs numbers are out Thursday afternoon and will likely show another record inventory. The trade is also monitoring trade talks, along with the spread of African Swine Fever in China and Europe.

Pork at midday was $.78 higher at $79.96. Ribs gained $3.30, while picnics and hams were up sharply and loins were higher. Butts were weak and bellies dropped $2.26.

The major direct barrow and gilt markets were not reported due to confidentiality. Friday, Iowa/Southern Minnesota was $1 higher at $52 to $62 for a weighted average of $60.20, the Western Cornbelt was up $.99 $52 to $62 with an average of $60.14, and national direct business was $1.13 higher at $52 to $62 for an average of $59.50. Today, butcher hogs at the Midwest cash markets are $2 to $5 higher at $36 to $48. Illinois direct sows are firmer at $18 to $29 on light to moderate demand for moderate offerings. Barrows and gilts are firmer at $31 to $42 on moderate demand and offerings. Boars range from $5 to $14.