Market News

Midday cash livestock markets

Direct cash cattle trade activity is off to a slow start this morning.  Bids have yet to surface and asking prices have been floated at $121 to $122 live in the South and $192+ dressed in the North.  There were a handful of deals reported in Iowa and Kansas yesterday around $118 live, but not near enough to establish a trend.  There are expectations for another week of higher cash trade, which will likely lead to significant trade volume to holding out until the end of the week.  Today’s Fed Cattle Exchange was a non-starter.  There was an offering of 1,068 head with zero head sold. 

Boxed beef opened lower with light demand for heavy offerings.  Choice is $1.77 lower at $219.72 and Select is $1.16 lower at $204.19. The Choice/Select spread is $15.53. 

At the Philip Livestock Auction in South Dakota, compared to last week steer calves under 550 pounds were steady to $2 lower and steers over 550 pounds were $4 to $8 lower.  Heifer calves were steady to $3 higher.  There was no comparison available for yearling heifers and there were very few yearling steers offered.  The USDA says demand was moderate to good for the high-quality steer and heifer calves.  While the yearling offering was limited, they were in high demand as buyers are still wanting to place yearlings on feed.  Receipts of 3,300 head was up on the week.  Feeder supply included 54 percent steers and 46 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 607 to 644 pounds brought $145.50 to $156.75 and feeder steers 650 to 695 pounds brought $140.50 to $150.75.  Medium and Large 1 feeder heifers 552 to 590 pounds brought $138 to $147.50 and feeder heifers 609 to 649 pounds brought $140 to $146. 

Cash hogs opened steady to lower with very large negotiated purchases.  Cash prices have been creeping up, but they took a breather this morning.  While there has been a lot of optimism surrounding demand, heavy supplies are limiting the markets ability to sustain higher prices for a long period of time.  Domestic demand remains solid, but it’s the global demand for US pork that needs to see big jumps.  Should that happen, it could be exactly what the cash market needs to see to turn around and move higher.  Hog weights are up significantly this week with weights average 288.4 pounds, a 1.4 pounds jump from last week and a 4.4 pound jump compared to last year at this time.  That contributes to even more pork being added to the global market. 

Barrows and gilts at the Iowa/Southern Minnesota opened $1.36 lower for a weighted average of $46.25; the Western Corn Belt opened $1.34 lower for a weighted average price of $46.25; the Eastern Corn Belt had no comparison but a weighted average of $47.91; and the National Daily Direct is $.12 lower with a base range of $42 to $48.97 for a weighted average of $47.46. 

Butcher hog prices at the Midwest cash markets are steady at $36. 

Pork values opened firm, up $.51 at $83.63.  Bellies jumped more than $5 this morning.  Hams were firm.  Butts were steady.  Loins, ribs, and picnics were weak to sharply lower.