Cattle futures advanced at the Chicago Mercantile Exchange as technical buying drove gains and feeder contracts drew added support from softer corn, while lean hogs finished mixed.
October live cattle settled up $2.15 at $212.92 and December added $2.22 to $214.80. September feeder cattle climbed $3.45 to $322.45 and October feeders rose $3.82 to $318.07.
In direct cash business, trade remained quiet. A few bids surfaced at $220 live in Nebraska, but most major feeding regions were largely inactive for much of the week. Activity has been limited, primarily around $345 dressed in the North, about $10 below last week’s weighted average. Buyers are seeking margin improvement, while sellers have shown little interest in taking another week of lower prices.
At the Hub City Livestock Auction in Aberdeen, South Dakota, the USDA reported a moderate to active market. Compared with the prior week, the best test on steers weighing 1,050 to 1,099 pounds was $6 to $12 lower, and the best test on heifers at 900 to 949 pounds was $7 to $8 lower on a narrow comparison. Receipts increased on both the week and year.
Feeder supply was 54 percent steers, and the entire offering weighed over 600 pounds. Medium and Large 1 feeder steers from 953 to 998 pounds sold for $301.75 to $320.75 with an average of $308.54. Medium and Large 1 feeder heifers from 917 to 935 pounds brought $288.50 to $302.50 with an average of $294.41.
Boxed beef prices moved sharply lower. Choice fell $3.77 to $381.36, and Select declined $3.49 to $359.19. The Choice/Select spread was $22.17.
Estimated cattle slaughter was 105,000 head, up 5,000 from the prior week but down 14,000 on the year, according to industry estimates.
Cattle futures and lean hogs mixed
Lean hog futures were mixed, with most contracts modestly higher on spreads and technical buying. October eased $0.27 to $80.62, while December gained $0.22 to $71.20.
Cash hog prices were steady to lower with moderate negotiated movement at major direct markets. Processors likely secured needed supplies earlier in the week. While there are some bright spots for demand, longer-term concerns persist. The market continues to track the availability of market-ready animals and hog weights.
Barrows and gilts on the National Daily Direct were down $0.99 with a weighted average of $89.76. Iowa/Southern Minnesota was $0.98 lower at $89.74, and the Western Corn Belt fell $1.07 to $89.71.
Butcher hogs at Midwest cash markets were $2 lower at $64. In Illinois, slaughter sows were steady with moderate demand for moderate offerings. Barrows and gilts were steady at $55 to $65 with moderate demand for moderate offerings. Boars ranged from $22 to $32 and $10 to $13.
Pork values closed $1.75 lower at $93.80, with loins, butts, picnics, ribs, and bellies all declining.
Estimated hog slaughter totaled 486,000 head, up 44,000 on the week but down 1,000 from a year ago, according to estimates.
For a broader look at supply dynamics, the recent USDA Cattle on Feed report signaled a potentially firmer cattle market ahead.