Market News
Beef futures rise awaiting direct trade
On the Chicago Board of Trade, live and feed cattle rose ahead of this week’s direct trading and the USDA’s feed supply report on Friday. October live cattle rose $1.57 to close at $178.80 and December live cattle rose $1.50 to $179.85. October feed cattle rose $1.75 to close at $240.75 and November feed cattle rose $2.72 to close at $238.30.
Direct cash cattle trading was again quiet on Tuesday. Bids were slow to surface. Asking prices from the South were in the $184 to $185 range. Friday’s fed cattle report indicated there could be significant volume through Thursday or Friday.
At Callaway Livestock Center in Missouri, steers under 700 pounds were flat to firm and 6-weight steers were a spot up $2. Yearling steers over 700 pounds were $4 to $7 higher. Feedstock heifers under 700 pounds were lightly inspected and heifers between 700 and 750 pounds sold at higher prices. Demand was good with moderate supplies, according to USDA. Highest demand was for top quality pot loads of yearling steers over 700 pounds. Sales were down for the week but up for the year. 78 percent of feedstock supply was steers and 76 percent of those offered were over 600 pounds. Medium and large 1 feeder steers from 750-788 pounds sold for $249.50-265.50 and feeder steers from 861-898 pounds sold for $241.60-243.75. Medium and large 1 feeder heifers from 558-583 pounds sold for $256-260 and feeder heifers from 708-730 pounds sold for $240-248.
Boxed beef finished mixed on low to moderate demand against a large supply. Choice was down $0.66 at $303.91 and Select was up $0.08 at $292.22. The Choice/Select spread was $11.69. Estimated cattle slaughter was 125,000 head, up 1,000 head from last week and nearly 1,000 head down from last year.
Pork futures closed higher, buoyed by increased physical trading and an optimistic outlook for demand. October pork futures rose $1.85 to close at $81.77, while December pork futures rose $1.52 to close at $73.70.
Cash hogs closed higher after solid negotiations. Processors have begun to be more aggressive in their sourcing activities this week, raising bids to move needed volumes. Prices reflect that. Global market demand for U.S. pork continues to show positive signs, supporting prices. There remain concerns about the longer-term state of domestic demand. Pork supplies are adequate, and the industry continues to monitor marketable hog availability and hog weights. National Dairy Direct boars and sows closed $0.37 higher, with a base range of $73-78.50 and a weighted average of $77.33. Iowa/Minnesota closed $0.06 higher, with a weighted average of $77.26. Western Corn Belt closed $0.20 higher, with a weighted average of $77.34. Eastern Corn Belt prices were not released due to confidentiality.
In the Midwest, slaughter hog prices in cash markets were steady at $60. In Illinois, slaughter sow prices were steady with moderate demand for medium supplies at $53 to $65. Castrated hogs and sows prices were steady with moderate demand for medium supplies at $45 to $55. Boars were $20 to $30 and $15 to $25.
Pork prices increased, up $0.78 to close at $95.00. Ham and belly prices were both up significantly. Picnic, butt, ribs and loins were all down. Hog slaughter was estimated at 474,000 head, down 10,000 from the previous week and just over 11,000 head down from last year.
