Market News

Midday cash livestock markets

Packer inquiry remains very limited at midday, following yesterday’s very light trade.  It appears the tone has been set, and it’s much lower than last week.  There were sharp losses on Wednesday as live deals fell to $112, about $7 lower than the previous week.  Dressed deals were at $180, about $9 lower than last week’s weighted average basis in Nebraska.  Asking prices today are around $114 to $115 live and $183 dressed. 

Boxed beef is lower on light to moderate demand and offerings.  Choice is $1.62 lower at $233.55 and Select is $1.07 lower at $224.06.  The Choice/Select spread is $9.49. 

At the Hub City Livestock Auction in South Dakota, compared to last week steers 650 to 700 pounds were steady to $2 lower, steers 701 to 850 pounds were $6 to $10 lower, 851 to 1050 pounds $10 to $13 lower.  Heifers 600 to 750 pounds were $6 to $10 lower, 751 to 800 pounds were not well compared, and 801 to 850 pounds were $10 to $13 lower.  The USDA says demand was moderate for the large offering of many packages, loads, and a few strings.  The best demand was seen for cattle which were light and green enough to go to summer grass.  Overall, the quality was less attractive than last week, with more plain to average quality included.  Flesh condition varied.  Receipts of 5,590 head were down on the week and up on the year.  Feeder supply included 71 percent steers and 95 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 753 to 792 pounds brought $123 to $140.25 and feeder steers 857 to 899 pounds brought $114.25 to $125.  Medium and Large 1 feeder heifers 651 to 697 pounds brought $124 to $135 and feeder heifers 806 to 827 pounds brought $108 to $113.50. 

Cash hogs opened mixed with moderate negotiated numbers.  There is increasing worry that domestic demand has plateaued for the time being and that could be the case until the social distancing restrictions are lifted.  With heavy supplies, that could push cash hog prices a lot lower before they start to rebound.  However, there is one silver lining right now – and that’s the global demand pictures.  Protein supplies are short and as long as US production isn’t disrupted the US is well-positioned to fill the holes left by African swine fever.  This week’s Export Sales report from the USDA shows a slight decline from last week, but a significant increase from the prior 4-week averages.  Increases were primarily for China.  Barrows and gilts at the National Daily Direct opened $.05 higher for a weighted average of $48.42 and the Western Corn Belt opened $1.14 lower for a weighted average of $49.52.  The Iowa/Minnesota and the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are $2 lower at $34. 

Pork values are sharply lower $2.42 lower at $59.63.  Butts dropped $21.48 and picnics dropped $11.37.  Bellies were lower and hams were weak.  Ribs and loins are sharply higher.