Negotiated cash fed cattle trade continued the week’s trend in the western Corn Belt Thursday at $105-$106/cwt. on a live basis. So far this week, live prices there and in Kansas and Nebraska are mostly $2-$3 lower at mainly $106. Dressed trade is $2-$3 lower at mostly $170.
Even so, Cattle futures edged higher, amid light trade and little conviction one way or the other.
Live Cattle futures closed an average of 58¢ higher (25¢ higher to $1.17 higher in expiring spot June).
Except for 12¢ and 20¢ lower in the back two contracts, Feeder Cattle futures closed an average of 66¢ higher (10¢ higher to $1.05 higher in spot Aug).
Boxed beef cutout values were sharply lower for Choice and steady for Select with light to moderate demand and offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was $2.06 lower Thursday afternoon at $213.24/cwt. Select was 22¢ lower at $200.66.
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Although trade uncertainty lingers, bank and tech stocks, along with higher oil prices, helped lift major U.S. financial indices Thursday.
The Dow Jones Industrial Average closed 98 points higher. The S&P 500 closed 16 points higher. The NASDAQ closed 58 points higher.
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Here’s another compelling reason to hope the U.S. irons out trade wrinkles sooner rather than later: the most hogs and pigs June 1 since the data series began in 1964.
There were 73.5 million hogs and pigs June 1, according to USDA’s Hogs and Pigs report issued Thursday. That’s 3% more than a year earlier and 1% more than Mar. 1.
Likewise, the 67.1 million market hogs on inventory June 1 was 3% more than the previous year and the most since the data series began in 1964.
The March to May pig crop of 33.2 million head was 4% more than last year and the most since estimates began in 1970.
Production came from a breeding herd of 6.32 million head, which was 3% more than last year and 2% more than the previous quarter. About half of the breeding herd (3.12 million head) farrowed in the March to May period. The average pigs saved per litter was a record high 10.63, compared to 10.55 last year.
U.S. hog producers intend to farrow 3.17 million sows between June and August this year, and 3.18 million sows between September and November.
In the latest World Agricultural Supply and Demand Estimates (WASDE) analysts with USDA’s Economic Research Service (ERS) peg pork production 4% more year over year for the April-June quarter; almost 6% more in the fourth quarter. Pork production this year is estimated at 26.72 billion lbs. with expectations of 3.3% more in 2019.