Market News
Cattle futures down on profit taking ahead of direct trade
Chicago Mercantile Exchange live and feeder cattle were lower on profit taking ahead of the week’s widespread direct cash cattle business. Losses in feeders were limited by the lower move in corn. October live was down $1.25 at $178.62 and December was $1.15 lower at $183.15. September feeders were $1.32 lower at $249 and October was down $1.42 at $251.22.
Direct cash cattle markets were quiet. Bids and asking prices are not yet defined and the week’s widespread direct business could wait until Thursday or Friday. It remains to be seen if the extremely high temperatures in parts of the Midwest and Plains will motivate buyers and sellers to wrap up this week’s business early or if they’ll wait until the last moment.
At the Joplin Regional Stockyards in Missouri, compared to the previous week, feeder steers weighing less than 625 pounds were $6 to $8 lower, with heavier weights steady to $2 lower. Feeder heifers weighing less than 625 pounds were down $8 to $10 with heavier weights steady. The USDA says the supply was light with moderate demand. There were several drafts of more plain cattle, but the supply was limited by high temperatures, pulling receipts down on the week and the year. 61% of the feeder offering were steers and 67% of the total run weighed more than 600 pounds. Medium and Large 1 feeder steers weighing 700 to 760 pounds ranged from $249 to $259 and 850 to 940-pound steers brought $221 to $233. Medium and Large 1 feeder heifers weighing 570 to 640 pounds ranged from $239 to $247 and 700 to 730-pound heifers sold at $232 to $252.
Boxed beef was higher on solid movement. Choice was up $1.49 at $317.05 and Select beef was $2.18 higher at $289.51, for a Choice/Select spread of $27.54. The estimated cattle slaughter of 124,000 head was down 1,000 on the week and 3,000 on the year.
Lean hog futures were pressured by the steady to lower cash business during the session. The trade is also waiting to see what shows up in the livestock slaughter numbers Thursday afternoon and watching weather’s impact on this week’s movement. October was $1.05 lower at $79.7 and December was down $1.37 at $72.35.
Cash hogs were steady to steady to lower with light negotiated movement at the major direct markets. The high heat and record or near-record temperatures and dry weather in much of the Midwest have hampered movement to some extent and will likely have an impact on average weights. Global demand seems to be holding up well, but there are some uncertainties about sustained demand due to global economic issues, while domestic demand is probably being affected by the weather and the impending end to the widespread grilling season.
National direct barrows and gilts closed $1.90 lower with a base price range $85 to $94 with a weighted average of $89.75, Iowa/Southern Minnesota averaged $90.26, and the Western Corn Belt was down $4.48 at $89.91. Butcher hogs the Dorchester, Wisconsin market were steady at $66. Illinois direct sows were steady at $48 to $61 on moderate demand for moderate offerings. Barrows and gilts were steady at $57 to $67 with moderate demand and offerings. Boars ranged from $10 to $32.
Pork closed $1.56 lower at $103.65. Bellies dropped, with hams and loins also lower. Butts, picnics, and ribs were firm to higher. The estimated hog slaughter of 476,000 head was unchanged on the week and down 6,000 on the year.
