Cattle futures lower ahead of On Feed numbers
At the Chicago Mercantile Exchange, live and feeder cattle ended the day lower ahead of Friday’s On Feed numbers. October live cattle closed $1.02 lower at $144.85 and December live cattle closed $1.40 lower at $149.35. October feeder cattle closed $1.25 lower at $177.87 and November feeders closed $2.27 lower at $178.05.
It took direct cash cattle trade a bit to get rolling this week, but once business got underway things really took off. Live deals in the South were at $143, $1 higher than last week’s weighted averages. Northern dressed deals had a range of mostly $228 to $231, $1 higher than last week’s weighted average basis in Nebraska. Expect at least a little cleanup trade to take place on Friday.
At the Bloomfield Livestock Market in Iowa, compared to last week steers under 600 pounds were lower, while heifers under 650 pounds were mixed. The USDA says there was strong demand for many load lots. Receipts were up on the week and the year. Feeder supply included 52% steers and 88% of the offering was over 600 pounds. Medium and Large 1 feeder steers 816 to 833 pounds brought $172 to $186.85 and feeder steers 851 to 882 pounds brought $170 to $176.10. Medium and Large 1 feeder heifers 657 to 679 pounds brought $175.50 to $185.35 and feeder heifers 736 to 738 pounds brought $170.50 to $178.
Boxed beef closed lower on light demand for heavy offerings. Choice closed $.73 lower at $248.40 and Select closed $4.03 lower at $222.11. The Choice/Select spread is $26.29. Estimated cattle slaughter 127,000 head – up 2,000 on the week and up 11,000 on the year.
Lean hog futures closed mostly lower on demand concerns as they waited for livestock slaughter and cold storage numbers from the USDA. October lean hogs closed $.30 lower at $94.12 and December lean hogs closed $.77 lower at $85.67.
Cash hogs closed mixed on a moderate negotiated run. For the most part, processors haven’t had to get aggressive in their procurement efforts to move their desired numbers. The industry continues to monitor the availability of market-ready hogs and is looking ahead to next week’s Quarterly Hogs and Pigs report. Demand for US pork on the global market and domestically has been strong, helping provide much-needed price support. But, there are long-term concerns that add pressure to prices. Barrows and gilts at the National Daily Direct closed $4.12 lower with a base range of $84 to $105 and a weighted average of $94.09; the Iowa/Minnesota and the Western Corn Belt both closed $.32 higher with a weighted average of $101.30; the Eastern Corn Belt closed $6.11 lower with a weighted average of $89.03.
Butcher hog prices at the Midwest cash markets are steady at $66. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $58 to $70. Barrows and gilt prices were steady with moderate demand for moderate offerings at $61 to $70. Boars ranged from $39 to $41 and $9 to $19.
Pork values closed higher – up $3.53 at $103.88. Bellies closed nearly $17 higher. Ribs, hams, and picnics were also higher. Loins were about steady and butts were lower. Estimated hog slaughter is 482,000 head – even on the week and up 6,000 on the year.