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Cattle, hogs lower on profit-taking

At the Chicago Mercantile Exchange, live cattle ended the day mostly lower on profit-taking and ahead of widespread direct cash business.  Feeder cattle closed lower on pressure from the day’s modestly higher move in corn.  There could also be some outside pressure as Cargill shut down its operations on Thursday at the Dodge City, Kansas plant following an explosion at a small stand-alone facility on the property.  October live cattle closed $.05 higher at $112.40 and December live cattle closed $.50 higher at $114.37.  October feeder cattle closed $1.02 lower at $144.20 and November feeders closed $1.60 lower at $144.32. 


Direct cash cattle trade activity was fairly quiet again.  There were just a handful of deals reported in Iowa at $175 dressed.  The rest of cattle country remains at a standstill.  Asking prices held firm at $112 to $113 live in the South and $178 to $180 dressed in parts of the North.  Look for significant trade volume to come down to the wire on Friday. 

At the Huss Livestock Market in Nebraska, receipts are down on the week and the year.  Compared to last week, steers over 700 pounds were steady to $4 higher and steers under 700 pounds were steady to $6 lower.  Heifers over 600 pounds were steady to $6 higher, 500 to 600-pound heifers were $1 to $4 lower and heifers under 500 pounds were steady to $4 higher.  Unvaccinated calves sold at a discount. The USDA says demand was moderate to good from the buyers in the crowd.  Feeder supply included 53 percent steers and 57 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 600 to 648 pounds brought $150 to $158.25 and feeder steers 655 to 696 pounds brought $148.50 to $158.  Medium and Large 1 feeder heifers 550 to 595 pounds brought $138.75 to $150.50 and feeder heifers 730 to 747 pounds brought $146.75 to $149.25

Boxed beef closed mixed – steady on Choice and higher on Select on moderate to good demand and moderate to heavy offerings.  Choice closed $.17 lower at $218.11 and Select closed $1.23 higher at $192.60.  Estimated cattle slaughter is 116,000 head, down 1,000 on the week and down 3,000 on the year. 

Lean hog futures ended the day lower on profit-taking and pressure from the lower wholesale values and the day’s weaker cash trade. The USDA’s Export Sales Report comes out on Friday morning.  December lean hogs closed $2.47 lower at $68.15 and February lean hogs closed $1.20 at $77.65. 

Cash hogs closed weak to lower with light negotiated purchase totals.  Packers likely have their desired numbers this week after such large totals through midweek.  The industry has some concern about how long this prolonged optimism about increased demand for US pork on the global market can last.  Especially with the fact that the details have yet to emerge from the preliminary trade deal with China.  With heavy supplies of ready barrows and gilts and increasingly large slaughter runs – any disruption to demand would be detrimental to pork prices.  Barrows and gilts at the Iowa/Southern Minnesota closed $.44 lower for a weighted average of $59.41; the Western Corn Belt closed $.60 lower for a weighted average of $59.62; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct closed $.81 lower with a base range of $54 to $60 for a weighted average of $57.87. 

Butcher hog prices at the Midwest cash markets at $2 higher at $42.  At Illinois, slaughter sow prices were $2 to $4 higher at $25 to $38 with good demand for moderate offerings.  Barrow and gilt prices were $1 higher at $36 to $41 with good demand for moderate offerings. 

Pork values closed lower – down $1.44 at $76.28.  Bellies closed sharply lower.  Hams and ribs were lower.  Butts were weak.  Loins and picnics were higher.  Estimated hog slaughter is 490,000 head, even on the week and up 12,000 on the year. 

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