A slow start to the week for cash business
It’s a typically quiet start to the week for direct cash cattle business. Today is a federal holiday and some markets are not reporting. Bids and asking prices have yet to surface. Significant trade volume will likely hold out until the last half of the week. It took nearly the entire week for business to develop as the bulk of the week’s trade held out until Friday. Live deals in Kansas and Texas were marked at $156, about $1 lower than the prior week’s weighted averages. Dressed business in Nebraska was at mostly $250, about two dollars below the previous week’s weighted average basis in Nebraska.
Boxed beef ended the day mixed on light to moderate demand for light offerings. Choice is $.81 higher at $277.43 and Select is $.34 lower at $256.55. The choice/select spread is $20.88.
At the OKC National Stockyards, feeder steers and heifers are steady to $3 higher. Steer calves under 550 pounds were unevenly steady and over 550 pounds were $5 to $8 higher. Heifer calves were unevenly steady. The USDA says demand was moderate to good. Weather remains dry and the recent strength in the market continues to support more cattle coming to town. Receipts were down on the week and on the year. Feeder supply included 46% steers and 34% of the offering was over 600 pounds. Medium and Large 1 feeder steers 455 to 496 pounds brought $216 to $233 and feeder steers 653 to 686 pounds brought $182.75 to $190. Medium and Large 1 feeder heifers 463 to 496 pounds brought $177 to $187.
Cash hogs closed lower with a light negotiated run. It’s been several weeks since the cash hog market has found significant support. Packers have been able to move their needed numbers without having to bid up. Demand has held strong both domestically and on the global market. And even though pork remains a great value for consumers at the grocery store, there are concerns demand could wane moving forward if the economy continues to slow. Last week, the USDA increased its expected pork production numbers, and also raised the average price. Barrows and gilts at the National Daily Direct closed $.63 lower with a base range of $65 to $73.50 and a weighted average of $71.17; the Iowa/Minnesota had no comparison but a weighted average of $72.26; the Western Corn Belt closed $1.12 lower with a weighted average of $72.26. The Eastern Corn Belt was not reported due to confidentiality.
Pork values closed $1.32 lower at $78.83. Hams and ribs were sharply lower. Loins were lower. Butts, bellies, and picnics were sharply higher.
The CME was closed on Monday in observance of the Martin Luther King, Jr. federal holiday.