Live cattle futures mixed ahead of direct business
At the Chicago Mercantile Exchange, live cattle were mixed, and feeders were lower ahead of the week’s direct business. Feeders had additional pressure from the day’s higher move in corn. December live cattle closed $.72 lower at $107.82 and February live cattle closed $.22 lower at $110.30. November feeder cattle closed $.85 lower at $136.12 and January contracts closed $.87 lower at $133.17.
Direct cash cattle trade activity remained relatively quiet on Tuesday. There appears to be a waiting game this week for higher prices. Bids have yet to surface and asking prices were expected to be floated around $110 live. If the holdout continues, it’s likely significant trade volume will be delayed until the latter half of the week.
At the Tri-State Livestock Auction in Nebraska, demand was good for all cattle offered. There was no comparison available from the previous week due to weather. Receipts were higher on the week and the year. Feeder supply included 56 percent steers and 33 percent of the offering was over 600 pounds. Medium and Large 1 feeder steers 503 to 536 pounds brought $155 to $170.75 and feeder steers 600 to 633 pounds brought $138.75 to $146.50. Medium and Large 1 feeder heifers 450 to 485 pounds brought $146.50 to $157.50 and feeder heifers 500 to 545 pounds brought $135 to $154.50.
Boxed beef closed higher on good demand for moderate offerings. Choice closed $.79 higher at $209.44 and Select is $2.83 higher at $195.45. Estimated cattle slaughter is 121,000 head – up 4,000 on the week and 1,000 on the year.
Lean hog futures closed mostly higher on the steady cash trade and sharply higher pork values during the session. December lean hogs closed $.55 lower at $65.40 and February lean hogs closed $.22 higher at $65.52.
Cash hogs closed firm with a moderate negotiated run. The industry continues to watch the supply and demand relationship. The availability of market-ready barrows and gilts is more than ample, and processors continue to push daily slaughter totals higher. And while that keeps the supply chains moving, it also adds more pork to an already saturated market. The cash hog market remains optimistic demand for US pork will continue to see strong support both domestically and globally. Barrows and gilts at the National Daily Direct closed $.17 higher with a base range of $56 to $62 for a weighted average of $60.13; the Iowa/Minnesota closed $.51 higher with a weighted average of $60.36; the Western Corn Belt closed $.18 higher with a weighted average of $60.39. Prices at the Eastern Corn Belt was not reported due to confidentiality.
Butcher hog prices at the Midwest cash markets are steady at $40. At Illinois, slaughter sow prices were steady with good demand for heavy offerings at $26 to $40. Barrow and gilt prices were $2 to $3 lower with good demand for moderate to heavy offerings at $39 to $40. Boars ranged from $5 to $8.
Pork values closed lower – down $1.15 at $82.99. Hams dropped $9.85 to end the day. Ribs were also lower. Picnics, bellies, butts, and loins were firm to sharply higher. Estimated hog slaughter is 493,000 head – up 1,000 on the week and 3,000 on the year.