Market News

Cattle futures drop on direct cash pressure

Chicago Mercantile Exchange live and feeder cattle were sharply lower, pressured by this week’s direct business and some signs the strength in wholesale beef might be waning for now. April live was down $4.52 at $196.77 and June was $4.07 lower at $191.82. March feeders were $5.42 lower at $265.30 and April was down $5.47 at $265.00.

Direct cattle business was light to moderate. Sales were reported at $206 on the live basis in Kansas and Texas, $2 lower than last week’s weighted average for the region, with some dressed sales in Nebraska at $328 and a handful of live sales at $208. That followed up on Wednesday’s activity at $205 live in Kansas, $3 lower, and $328 dressed in Iowa and Nebraska, down $1. Asking prices are $208 live and $329+ dressed. The USDA says beef export sales of 24,900 tons were up on the week, with South Korea, Japan, and China topping the list.

Boxed beef closed mixed with light to moderate movement. Choice was down $1.36 at $323.98 and Select beef was up $.44 at $314.77 for a spread of $9.21. The estimated cattle slaughter of 118,000 head was down 4,000 on the week and 3,922 on the year.

At the Clarinda Livestock feeder cattle sale in Iowa, compared to the previous week, 500 to 600 pound steer calves were up $8 to $12, with 600 to 700 pounders as much as $6 higher, while steers weighing 750 pounds and heavier had a lower undertone to losses of $6. All heifer weight classes were fully steady to $2 to $6 higher. The USDA says demand was very good, with receipts down on the week and the year. 61% of the run were steers and 69% of the total offering weighed more than 600 pounds. Medium and Large 1 feeder steers weighing 600 to 700 pounds were reported at $313.50 to $335 and 700-to-800-pound steers brought $276.50 to $296.50. Medium and Large 1 feeder heifers weighing 500 to 600 pounds ranged from $313.50 to $335 and 600-to-700-pound heifers sold at $274 to $306.

Lean hog futures ended the session mixed, mostly modestly higher, on spread trade and the higher midday move in pork. The wholesale pork market is showing some signs of an uptrend. April was up $.20 at $91.75 and May was $.10 higher at $95.82.

Cash hogs were narrowly mixed, with light closing negotiated numbers at the major direct markets. It looks like most buyers have the needed near-term numbers in hand after the more aggressive movement earlier in the week. Buyers and sellers continue to monitor ready numbers, wholesale business, and global demand. The USDA says pork export sales of 50,700 tons were above the prior week, with Mexico, South Korea, and Japan leading the way.

National direct barrows and gilts were $.48 lower with a base price range of $80 to $88 for a weighted average of $86.23, with Iowa/Southern Minnesota down $.22 at $86.98 and the Western Corn Belt up $.07, also at $86.98. The Eastern Corn Belt had a five-day rolling average of $82.62. Butcher hogs in Dorchester, Wisconsin and Garnavillo, Iowa were steady at $60. Illinois direct sows were steady at $49 to $61 with moderate demand for moderate offerings. Barrows and gilts are steady at $48 to $58 on moderate demand and offerings. Boars range from $15 to $30.

Pork closed $1.81 higher at $95.64. Loins, butts, hams, and bellies were sharply higher, while picnics were weak and ribs were sharply lower. The estimated hog slaughter of 481,000 head was down 2,000 on the week and 10,585 on the year.