Direct cash cattle trade picks up steam Thursday

Chicago Mercantile Exchange live and feeder cattle futures were higher, with boxed beef up at midday, watching direct business develop. Feeders had additional support from the weakness in corn. December live was up $1.05 at $188.27 and February was $.70 higher at $188.87. November feeders were $1.27 higher at $249.95 and January was up $1.32 at $247.20.

Cash cattle country had some light trade reported in parts of the North at $296, steady with last week’s weighted average basis Nebraska. Live business in the South is reported at $187, a dollar higher than last week’s weighted average. Some southern asking prices have been firm around $188.

At Mitchell Livestock Auction in South Dakota on Thursday, there were light numbers for light feeders so a trend wasn’t applicable. Heavy steers were trending steady to $4 lower. Heifers were on a steady to higher undertone. USDA says the majority of feeders came in large load lots. Demand was good overall. Total receipts were down slightly on the week but above year-ago levels. Feeder supply included 44% steers and 99% of the offering was over 600 pounds. Medium and Large 1 feeder steers 931 pounds brought $235. Medium and Large 1 feeder heifers 971 pounds sold for $210.

Boxed beef closed higher with Choice up $1.77 at $309.95 and Select up $2.10 at $290.73. The Choice/Select spread was $19.22.

Estimated cattle slaughter was 115,000 head – down 9,000 on the week and down more than 6,000 on the year.

Lean hog futures were higher, supported by the strong week for pork export sales. That helped futures shrug off the lower midday pork and slow, but steady, cash business. December lean was up $1.37 at $76.95 and February was $.95 higher at $80.40.