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Cattle futures supported by broader markets

At the Chicago Mercantile Exchange, live and feeder cattle futures ended the day higher supported by the strong start to the week’s cash trade and broader market support.  June live cattle closed $1.40 higher at $100.80 and August live cattle closed $1.47 higher at $100.72.  August feeder cattle closed $.72 higher at $134.02 and September feeder cattle closed $.65 higher at $135.07.    

Another light round of direct cash cattle trade took place on Wednesday in many parts of cattle country.  Northern dressed deals were mostly at $190, fully steady with Tuesday’s business and the top end of last week’s trade.  Southern live deals were at $120, also steady with the top end of last week’s business.  Asking prices are around $120 to $125 live and $190 to $195 dressed. 

At the Winter Livestock Auction in Dodge City, Kansas, compared to last week feeder steers 750 to 850 pounds sold steady to $3 higher, above 850 pounds $2 to $3 lower.  Feeder heifers 650 to 700 pounds and 850 to 900 pounds sold $1 to $2 higher, 750 to 800 pounds were steady to $1 lower.  Receipts were down on the week and up on the year.  Feeder supply included 59 percent steers and 94 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 784 to 799 pounds brought $126.50 to $131.25 and feeder steers 808 to 842 pounds brought $122 to $129.10.  Medium and Large 1 feeder heifers 600 to 647 pounds brought $137.25 to $140.50 and feeder heifers 750 to 796 pounds brought $118 to $120.25. 

Boxed beef closed sharply lower on light demand for heavy offerings.  Choice is down $7.72 at $377.77 and Select is $9.82 lower at $350.20.  The Choice/Select spread is $27.57.  Estimated cattle slaughter is 110,000 head – up 9,000 on the week, but down 12,000 on the year. 

Lean hog futures ended the day mostly higher on broader market support, nearby contracts were under pressure from the sharply lower wholesale values.  June lean hogs closed $.32 lower at $60.17 and July lean hogs closed $.27 lower at $59.30. 

Cash hogs ended the day lower with moderate negotiated purchases.  Supplies of market-ready barrows and gilts are more than ample.  And while pork processors are working to increase their slaughter capacity, they’re still not close to pre-COVID-19 levels.  That’s not helping to quickly be able to work through the backlog of hogs in the supply chain.  Exports were a bright spot for the US pork sector in the first quarter of the year and have the potential to remain strong for the rest of the year as global protein supplies are still short.  Hog weights dropped to 291.5 pounds, that’s a 3-pound decline from last week, but it’s still 6-pounds more than last year.  Barrows and gilts at the National Daily Direct closed $1.57 lower with a base range of $32 to $40 for a weighted average of $37.82; the Iowa/Minnesota closed $1.33 lower for a weighted average of $39.25; the Western Corn Belt closed $1.28 lower for a weighted average of $39.30.  The Eastern Corn Belt was not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $20 in Dorchester, Wisconsin.  At Illinois, slaughter sow prices were steady with light to moderate demand for heavy offerings at $7 to $20.  Barrow and gilt prices were weak with moderate demand for heavy offerings at $16 to $20.  Boars ranged from $1 to $5. 

Pork values closed sharply lower – down $8.82 at $88.82.  Loins and ribs closed sharply lower – down nearly $26 and $24.  Hams and butts were also lower.  Bellies and picnics closed higher.  Estimated hog slaughter is 415,000 head – up 18,000 on the week, but still down 46,000 on the year. 

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