Cattle Futures Surge Ahead of Anticipated Direct Market Activity
The cattle futures market experienced a significant uptick, with both live and feeder cattle closing higher on technical buying as traders closely monitored the direct cash markets. The October live cattle contract closed $1.07 higher at $178.02, while the December live cattle contract closed $1.37 higher at $178.60. In the feeder cattle market, the October contract closed $2.25 higher at $239.75, and the November contract closed $1.45 higher at $235.47.Bullish Sentiment Drives Cattle Futures Higher
Direct Cash Cattle Trade Remains Steady
There was another light round of direct cash cattle business on Thursday, with live deals in the South marked at $181, fully steady with the previous week's trade and the transactions that took place on Wednesday. Asking prices in the South remained firm at $182 or more, while the Northern region's pricing had yet to be disclosed. Market participants anticipate more direct cash cattle business to take place before the end of the trading week.Feeder Cattle Auction Sees Lighter Offerings, Steady Demand
At the Bloomfield Livestock Auction in Iowa, the USDA reported that no clear trend was available for the much lighter offering this week. Demand was described as moderate to good, and the supply included several strings of unweaned calves. Receipts were down compared to the previous week and the same period last year. The feeder cattle supply consisted of 61% steers, with 4% of the offering weighing over 600 pounds. Medium and Large 1 feeder steers weighing 503 to 545 pounds brought $290 to $307, while those weighing 550 to 585 pounds fetched $277 to $297.50. In the feeder heifer segment, Medium and Large 1 heifers weighing 511 to 542 pounds sold for $259 to $270, and those weighing 506 to 516 pounds brought $255 to $272.50.Boxed Beef Prices Mixed, Slaughter Levels Down
The boxed beef market closed with mixed results, reflecting light to moderate demand for the moderate offerings. Choice beef was $0.18 lower at $307.18, while Select beef closed $1.26 higher at $295.64, resulting in a Choice-Select spread of $11.54. Estimated cattle slaughter for the week was 123,000 head, down 1,000 from the previous week and approximately 1,500 lower than the same period last year.Lean Hog Futures Decline, Cash Hog Prices Soften
Lean hog futures ended the trading session lower, with concerns surrounding long-term domestic demand. The October lean hog contract closed $0.85 lower at $78.90, and the December lean hog contract closed $0.75 lower at $71.55.In the cash hog market, prices closed lower with a light negotiated run. Processors have had decent-sized runs this week and likely have the bulk of their needed numbers on hand. Ample supplies of market-ready hogs have allowed them to move larger numbers without having to be overly aggressive in their procurement efforts. It was a strong week for pork export sales, and the strong global demand for U.S. product is supportive to prices. However, lingering concerns about domestic demand are causing some uncertainty.Barrows and gilts at the National Daily Direct were down $1.25, with a base range of $73 to $79 and a weighted average of $76. In the Iowa/Minnesota region, prices closed $2.12 lower with a weighted average of $76.61, while the Western Corn Belt closed $1.32 lower with a weighted average of $75.97. Prices at the Eastern Corn Belt were not reported due to confidentiality.Steady Butcher Hog and Sow Prices in Midwest Cash Markets
Butcher hog prices at the Midwest cash markets were steady at $60. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings, ranging from $53 to $65. Barrows and gilts were also steady with moderate demand for moderate offerings, priced between $45 and $55. Boar prices ranged from $18 to $28 and $8 to $15.Pork Values Climb, Hog Slaughter Increases
Pork values closed higher, up $1.27 at $94.18. Bellies, ribs, loins, and butts were all sharply higher, while hams and picnics were lower. Estimated hog slaughter for the week was 483,000 head, up 4,000 from the previous week but down more than 1,000 compared to the same period last year.