Market News

Midday cash livestock markets

Direct cash cattle trade activity is off to a typically quiet start.  Bids and asking prices haven’t been established yet.  It’s likely significant trade volume will develop sometime Midweek or later.  Last week, Northern dressed business ranged from $177 to $183, mostly $182, which was generally $1 higher than the prior week’s weighted average basis in Nebraska.  Southern live deals had a full range of $114 to $115, mostly $115 – also steady to $1 higher than the prior week’s weighted average basis. 

Boxed beef opened mixed with moderate demand for light to moderate offerings.  Choice opened $1.81 lower at $238.99 and Select is $2.02 higher at $216.35.  The Choice/Select spread is $22.64. 

In South Dakota last week, steer calves were steady to $1 higher and heifer calves were steady to $2 higher.  Yearling feeder steers were steady to $2 higher with instances of $5 higher and feeder heifers were steady to $3 higher.  Receipts of 44,832 head were down on the week.  The USDA says demand was moderate to good for steer and heifer calves in the central and western auction markets and offerings remained very large with long strings of very high-quality calves.  Demand for yearling steers and heifers was very good.  Feeder supply included 62 percent steers and 47 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 500 to 549 pounds brought $147 to $176.50 and feeder steers 600 to 649 pounds brought $140 to $163.  Medium and Large 1 feeder heifers 550 to 599 pounds brought $126 to $150.50 and feeder heifers 600 to 649 pounds brought $127 to $148.25. 

Cash hogs opened weak with moderate negotiated purchase numbers.  The industry has mixed feelings about the whole China trade deal and it’s creating uncertainty in the market.  Slaughter totals continue to hit or come close to records almost daily and the supply of ready barrows and gilts remains ample, but demand potential is uncertain and the combination of the three makes it very difficult for cash prices to turn higher.  Especially as export demand has yet to improve as was expected.  Barrows and gilts at the Iowa/Southern Minnesota opened $.36 lower for a weighted average of $41.29; the Western Corn Belt opened $.38 lower for a weighted average of $41.29; the Eastern Corn Belt was not reported due to confidentiality; and the National Daily Direct opened $.27 lower with a base range of $40 to $46 for a weighted average of $41.98. 

Butcher hogs at the Midwest cash markets are steady at $36.  At Illinois, slaughter sow prices were $2 lower at $26 to $37 with moderate to good demand for heavy offerings.  Barrow and gilt prices were steady at $25 to $30 with moderate demand for moderate offerings. 

Pork values opened higher – up $1.88 at $90.01.  Bellies jumped nearly $17 this morning.  Hams and ribs were also higher.  Loins were sharply lower, and butts and picnics were lower.