Market News

Midday cash livestock markets

A very light direct cash cattle trade has developed in parts of cattle country.  Dressed deals in Nebraska are marked at $178, which is generally $2 lower than last week’s weighted average.  Asking prices are around $116 to $117 live and $180 dressed.  Bids are still between $109 and $112 live and $176 dressed.  The wide spread could delay significant trade volume until the end of the day today.

At the Mitchell Livestock Auction in South Dakota, receipts are up on the week and the year.  Compared to the most recent sale, steer calves were $3 to $6 lower, heifer calves were steady to $2 lower in a narrow comparison, and yearling steers were mostly $4 higher.  The USDA says demand was moderate to good for this week’s offering and the majority were preconditioned and weaned and sold on an active market.  Many full loads of yearlings steers and heifers were in the offering.  The market was active on yearlings, but buyers are cautious as the cash market continues to struggle.  Feeder supply included 46 percent steers and 74 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 556 to 599 pounds brought $158 to $170 and steer claves 603 to 648 pounds brought $155 to $168.  Medium and Large 1 feeder heifers 550 to 592 pounds brought $143 to $154 and feeder heifers 807 to 842 pounds brought $144.50 to $147.50.

Boxed beef cutout values are steady to weak at midday.  On light demand for light offerings.  Choice is $.22 lower at $213.33 and Select is $.02 lower at $197.56.  The Choice/Select spread is $15.77.

Cash hogs opened steady with light negotiated purchase totals.  Processing margins have narrowed recently and are at their lowest since August.  Packers will likely pressure hog prices lower to boost their bottom line.  However, there’s some optimism in the pork sector as China has confirmed African Swine Fever has hit the Sichuan province – which is the country’s largest pork producing region. Should the global pork supply be disrupted – it is likely to increase demand for US pork products.  There have been rumblings that trade talks with China are getting more serious.  And the President indicated today that the country “wants a deal”. Prices at the major regional direct markets were not reported due to confidentiality.

Butcher hogs at the Midwest cash markets are steady in Dorchester, Wisconsin at $36.  Zumbrota, Minnesota and Garnavillo, Iowa are closed today.

At Illinois, slaughter sow receipts are down on the week and the year.  Prices are steady at $30 to $44 with moderate demand for moderate offerings.  Barrow and gilt prices are steady at $28 to $37 with moderate demand for moderate offerings.  Pork cutout values are firm at midday – up $.32 at $68.99.  The picnics are $3.27 higher.  Butts and ribs are firm.  Hams are steady.  Loins and bellies are weak.