Market News

Midday cash livestock markets

Direct cash cattle trade is off to a quiet start for the week.  Bids and asking prices have yet to be established and it’s likely significant trade volume will be delayed until the latter half of the week.  It will be interesting to see where business starts, as packers are likely coming into the week short-bought.  Last week’s business was sharply lower with most of the live trade in the South coming on Wednesday at $105, roughly $5 lower than the previous week’s weighted average basis.  Northern dressed deals had a full range of $165 to $172, mostly at $172, which was about $10 lower than the previous week’s weighted average basis.   

Boxed beef is mixed at midday on light demand for light offerings.  Choice is $.16 lower at $238.53 and Select is $.88 higher at $214.14.  The Choice/Select spread is $24.39. 

In South Dakota last week, receipts were down on the week and the year.  The feeder cattle market was extremely uneven as sales held the week prior were several dollars higher than last week’s sales as the futures market started its downward spiral last Monday.  Overall, feeder steers and heifers were $3 to $8 lower.  Demand started good to very good, but by the end of Monday, the market was fearful of what could happen in the cash fed market after the announcement of the Tyson fire.  Feeder supply included 73 percent steers and 97 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 850 to 899 pounds brought $144.50 to $142.24 and feeder steers 950 to 994 pounds brought $125 to $144.75.  Medium and Large 1 feeder heifers 809 to 838 pounds brought $126 to $135.50 and feeder heifers 904 to 928 pounds brought $112 to $129.25. 

Cash hogs opened lower to sharply lower with moderate negotiated purchase numbers.  Heavy supplies and demand uncertainty continue to pressure cash prices.  The market has yet to see a significant jump in demand for US pork, and that, combined with the ample supply of ready barrows and gilts and extremely large slaughter runs doesn’t give prices much room to move higher.  Barrows and gilts at the Iowa/Southern Minnesota opened $.90 lower for a weighted average of $71.85; the Western Corn Belt opened $2.93 lower at $68.96; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct is $2.27 lower with a base range of $59 to $72.50 for a weighted average of $67.55. 

Butcher hog prices at the Midwest cash markets are $3 lower in Dorchester, Wisconsin at $50 and steady in Garnavillo, Iowa at $56.  At Illinois, slaughter sow prices were $3 lower at $30 to $45 with moderate to good demand for heavy offerings.  Barrow and gilt prices were steady at $41 to $49. 

Pork values are firm at midday – up $.38 at $86.64.  Bellies are sharply higher.  Loins and picnics are firm to higher.  Butts, ribs, and hams are all weak to lower.