Easy direct trade in livestock develops at lower prices

Market News

Easy direct trade in livestock develops at lower prices

There were significant declines in live cattle prices on the Chicago Mercantile Exchange due to weaker demand and external market pressures from the economy. Live cattle closed $3.42 lower at $175.60 in October. Beef cattle lost $4.77 in September to close at $234.50.

In direct cash cattle trading, a large herd of cattle in Nebraska sold for most of $295, down $3 from last week's weighted average. Live animal sales in the South ranged from $183 to $185, down $1 to $2 from last week. Bidding prices have yet to be fully established, but in the South they are around $186 to $187. There are few bids on the table at this time. Significant trading volume could be delayed until Wednesday or later in the week.

At the OKC West feedlot auction in El Reno, Oklahoma, steer and heifer calf prices were steady to weak compared to the previous week, with limited comparable sales. The USDA says demand was fair to good, with receipts down sharply week-over-week and year-over-year. 55% of the supply was steers, and 66% of all feedlot cattle weighed less than 600 pounds. Medium and large 1-feeder steers weighing 500 to 520 pounds brought $300 to $312.50, and 600- to 620-pound steers brought $265 to $287.50. Medium and large 1-feeder heifers weighing 500 to 540 pounds sold for $269 to $287 and 600 to 610 pound heifers ranged from $243 to $251.

Beef boxes closed lower. Choice boxes lost $0.47 to $315.08 and Selects lost $0.97 to $301.04 amid moderate to severe price fluctuations. Estimated slaughter of 124,000 head of cattle was 2,000 more than last week and about the same as a year ago.

Lean hogs traded lower, but not as much as cattle, as lingering questions about continued domestic demand put pressure on them. Lean hogs for October closed $0.40 lower at $76.40.

National Direct Barrows and Gilts closed $0.54 higher with a strike price range of $80 to $85 and a weighted average of $83.26 on solid negotiating action. The major regional markets have had no comparison of late. Iowa/Southern Minnesota had a weighted average of $82.86, the Western Corn Belt was at $83.33 and the Eastern Corn Belt was at $81.98.

Midwest butcher markets were steady at $69. Illinois sows were steady at $51-$63 with moderate demand for medium to heavy offerings. Scottish sows and gilts were steady at $48-$58 with moderate demand for medium heavy offerings. Boars were between $8-$28.

Pork prices closed $0.45 higher at $97.54. Sirloin, leg, ribeye, ham and belly were steady to higher, offsetting the decline in picnics. The estimated number of hogs slaughtered was 482,000 on Tuesday, the same as last week and 7,000 more than a year ago.