Market News
Cattle futures rise on direct trade
Live and feed cattle increased on the Chicago Mercantile Exchange ahead of widespread direct trading and Friday's USDA feed report. June Live Cattle closed $1.20 higher at $184.17; August Live Cattle closed $1.25 higher at $181.67; August Feeder Cattle closed $3.07 higher at $262.90. , September feeder cattle closed $2.62 higher at $263.75.
Direct cash cow trading activity was relatively quiet on Wednesday as well. There were some live $187 trades reported in Kansas, but not enough to establish an accurate price trend. In the south, the asking price was around $188 to $190, but in the north it was not established. In particular, the Cattle On Feed report released Friday by the Department of Agriculture could put buyers and sellers at odds.
At South Dakota's Hub City Livestock Auction, steers 900-949 pounds, $3-4 lower, best tested. Heifers best tested 900-949 pounds and were about steady. USDA said demand was good to very good for loads and strings and moderate to good for packages, many of which were home-raised fall calves. Meat quality was mixed. There were a lot of larger cattle offered this week, and like last week, quality was about average to attractive. The market was active. Acceptances were down week-to-week but up year-to-year. Medium and large one-feeder steers 856-898 pounds made $243.50 to $255, and feeder steers 901-933 pounds made $239 to $241.75. Medium and large one-feeder heifers from 851-887 pounds made $226.50 to $242.50, and feeder heifers from 920-943 pounds made $224 to $237.25.
Boxed beef closed lower due to weak demand for firm product. Choice closed down $0.85 at $312.17 and Select closed down $1.26 at $299.61. The Choice/Select spread was $12.56. Estimated cattle slaughter was 122,000 head, down 2,000 head for the week and roughly flat for the year.
Lean hog futures ended the day lower, weighed down by firm spot trade and a midday decline in pork prices. June lean hogs closed down $1.00 at $95.40 and July lean hogs closed down $1.20 at $98.12.
There were some fairly light business negotiations, and the dollar ended the session strong. Processors are not proactive about procurement. Demand for U.S. pork is strong in global markets and domestically. That continues to drive the market. Hog weights were flat for the week but still nearly 4 pounds above last year's levels. The pace of slaughter is about 0.5% higher than last year, and this increase is also helping to keep the market active. The industry continues to monitor the availability of marketable pigs. National Dairy Direct Burrows and Gilt closed $0.37 lower, with a base price of $84-$90 and a weighted average of $87.83. Iowa/Minnesota ended $0.23 higher with a weighted average of $88.52. The Western Corn Belt ended $0.18 higher with a weighted average of $88.34. In the Eastern Corn Belt, there was no comparison other than a weighted average of $86.10.
Butcher hog prices in the Midwest cash market were steady at $50. In Illinois, slaughter sow prices were steady with moderate demand at $35-$47. Barrow and gilts were steady with moderate demand for moderately priced goods at $51-$61. Wild boars ranged from $18-$28 and $8-$15.
Pork prices fell by $0.62 to close at $100.07. Ribs fell sharply, as did pork belly, picnic meat and ham. Rib meat is almost flat. The loin rises. The estimated number of pigs slaughtered was 484,000, an increase of about 4,000 from the previous week and an increase of about 14,000 from the previous year.
