Market News

Cattle futures fall on midday beef, broader market

Chicago Mercantile Exchange live were down and feeders were sharply lower, pressured by the losses in the broader market and lower midday boxed beef, getting ready for the week’s direct business. Feeders picked up additional pressure from a delayed reaction to Monday’s gains in feed grains. October live cattle were down $.95 at $144.80 and December was $.90 lower at $150.45. September feeders were $2.07 lower at $179.45 and October was down $2.60 at $180.52.

Direct cash cattle markets were quiet. Asking prices were $143 to $145 on the live basis in the south, with bids of $140 to $141 live and no reports of any interest yet in the north. Widespread business this week could wait until Wednesday. Market ready numbers are tighter, but buyers were able to move some supplies ahead last week, which might limit packer demand this week.

Boxed beef closed lower with heavy movement. Choice was down $2.28 at $256.66 and Select was $2.18 lower at $233.58. The estimated cattle slaughter of 128,000 head was up 1,000 on the week and 8,000 on the year.

At the close for the Oklahoma National Stockyards feeder cattle sale, compared to the previous test, feeder steers were mostly steady with steer calves $4 to $8 lower. Feeder heifers were steady to $2 higher and heifer calves were unevenly steady. The USDA says demand was very good for feeder cattle and long weaned calves, but just moderate for all other types, with a large run even as many area farmers were planting winter wheat. Receipts of 9,932 head were above both the previous test and year ago levels. 60% of the weekly offering were steers and 58% of the run weighed less than 600 pounds. Medium and Large 1 feeder steers weighing 500 to 600 pounds ranged from $178 to $204 and 600 to 700-pound steers sold at $174 to $198. Medium and Large 1 feeder heifers weighing 400 to 500 pounds brought $172 to 190 and 500-to-600-pound heifers were reported at $163 to $176.

Lean hog futures were sharply higher, with the most active contracts at a discount to the cash index. October lean hogs were $3.87 higher at $95.75 and December was up $2.92 at $85.70.

Cash hogs were steady to sharply higher with light to moderate closing negotiated numbers. That sharply higher finish with relatively light negotiated sales might be a sign some buyers were very short bought and in need of near-term supplies. There had been talk earlier in the week buyers would continue efforts to improve margins over bidding up, but at least Tuesday, renewed demand was in force. Further indicators of near and long-term supplies will be in the USDA’s Quarterly Hogs and Pigs report, out on the 29^th.

National direct barrows and gilts closed $9.98 higher with a base price range of $95 to $100 for a weighted average of $99.41, with Iowa/Southern Minnesota up $3.31 at $98.87 and the Western Corn Belt $3.13 higher at $98.67. The Eastern Corn Belt was not reported due to confidentiality.

Butcher hogs at the Midwest cash markets were steady at $70. Illinois direct slaughter sows were steady at $58 to $70 on light to moderate demand and offerings. Barrows and gilts were $2 lower at $68 to $77 on moderate demand and offerings. Boars ranged from $10 to $42.

Pork closed $1.01 lower at $104.70. Loins, butts, picnics, ribs, and bellies were weak to sharply lower, while hams were higher. The estimated hog slaughter of 476,000 head was down 7,000 on the week and 5,000 on the year. Monday’s slaughter was revised to 475,000 head, 8,000 less than the initial projection.