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Cattle futures mixed ahead of direct trades
Market news
Cattle futures mixed ahead of direct trades
On the Chicago Mercantile Exchange, live and feeder cattle were mixed ahead of the week’s direct trading. August lives closed $0.40 lower at $184.42 and October lives closed $0.55 higher at $184.35. August feeders closed $0.15 higher at $259.05 and September feeders closed $0.05 lower at $260.07.
Direct cattle trade became calm again on Tuesday. Offers and asking prices did not appear. This week’s program listings are mixed — a little higher in Kansas, but lower in Nebraska, Colorado and Texas. Significant trading volume will likely be delayed until midweek or later.
At the OKC West Livestock Auction, weaned steers and heifers were mostly flat. Unweaned calves or short weaners sold at a lower pitch. USDA says demand was moderate. Revenues were down significantly for the week and year. Feeder supply included 43 percent steers and 38 percent of the offering was over 600 pounds. Medium and large feeder steers 602 to 639 pounds brought $283 to $285 and feeder steers 700 pounds brought $280. Medium and large feeder heifers 518 to 545 pounds brought $285 to $290 and feeder heifers 603 to 647 pounds brought $245 to $255.
Packaged beef closed higher with good demand for solid offerings. Choice was $0.75 higher at $323.39, and Select closed $0.19 higher at $305.26. The Choice/Select spread is $18.13. The estimated cattle slaughter was 121 thousand heads – a drop of 2 thousand in the week and a drop of around 7 thousand in the year.
Lean hog futures ended the day lower ahead of Thursday’s quarterly hogs and hogs report. July lean hogs closed $0.95 lower at $89 and August lean hogs closed $0.02 higher at $86.75.
Cash hogs closed higher with a big run traded. Processors were aggressive in their procurement efforts on Tuesday and increased bids to move numbers. Demand for US pork in the global market remains strong, and this is a positive for the market. But there are a few things that limit growth potential: the ample supply of market-ready pigs and pig weights that are still relatively high. The USDA’s quarterly pig and hog report will be released on Thursday. Wheelbarrows and gilts at National Daily Direct closed $2.57 higher, with a base range of $85 to $90 and a weighted average of $89.21; Iowa/Minnesota closed up $2.44, with a weighted average of $89.39; the Western Corn Belt closed up $2.45, with a weighted average of $89.21. Prices in the Eastern Corn Belt were not released due to confidentiality.
Hog prices for slaughter in Midwest cash markets are stable at $66. In Illinois, sow prices for slaughter have remained stable, with moderate demand for moderate offers at $61 to $73 Barrows and gilts remained stable, with moderate demand for moderate offerings at $52 to $62. Wild boars ranged from $18 to $28 and $8 to $15.
Pork values closed lower – falling US$2.52, to US$95.31. The bellies are clearly lower. Hams, ribs, picnics and sirloins are lower. The asses were firm. The estimated slaughter of pigs was 481 thousand – a drop of 1 thousand in the week and an increase of around 15 thousand in the year.