Market News

Cattle futures finish the day lower on profit-taking

At the Chicago Mercantile Exchange, live and feeder cattle were down on profit-taking ahead of direct trade, feeders had additional pressure on the gains in corn. October live cattle closed $.60 lower at $212.07 and December live cattle closed $1.20 lower at $213.37.  October feeder cattle closed $1.62 lower at $315.40 and November feeder cattle closed $1.90 lower at $308.52. 

Direct cash cattle trade activity was quiet Tuesday.  Bids and asking prices did not surface.  Showlists this week are lower across all major feeding areas.  Significant trade volume will likely be delayed until midweek or later. 

At the Russell Livestock Auction in Iowa, there were several load lots that included many yearling steers.  There was no recent sale for an accurate price comparison.  The USDA says demand was very good on the moderate supply.  Receipts were up from the most recent sale.  Feeder supply included 73 percent steers with 82 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 608 to 649 pounds brought $383 to $410 and feeder steers 861 to 880 pounds brought $319 to $332.  Medium and Large 1 feeder heifers 602 to 644 pounds brought $341.50 to $366 and feeder heifers 756 to 791 pounds brought $308 to $319. 

Boxed beef was sharply higher and higher with solid demand for moderate offerings.  Choice was $3.93 higher at $379.75 and Select was $1.96 higher at $360.45.  The Choice/Select spread is $19.30.  Estimated cattle slaughter was 106,000, down 1,000 on the week, and down more than 16,000 on the year.

Lean hog futures were mixed on spread trade. October lean hogs closed $.02 lower at $83.65 and December lean hogs closed $.15 lower at $74.00.

Cash hogs closed sharply higher with a solid negotiated run. Processors appear to be a bit more aggressive in their procurement efforts, but because they have leverage they are able to control the pace of business.  The industry continues to monitor the availability of market-ready hogs and hog weights.  There have been some bright spots when it comes to demand, which has been supportive to the market, but there are lingering long-term concerns about strength. Barrows and gilts at the National Daily Direct were $2.90 higher with a base range of $90 to $96 and a weighted average of $91.63; no comparison at the Iowa/Minnesota but a weighted average of $89.70; the Western Corn Belt closed with a weighted average of $89.67.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are $2 higher at $66. At Illinois, slaughter sows were steady with moderate demand for light to moderate offerings at $43 to $55.  Barrows and gilts were steady with moderate demand for moderate offerings at $55 to $65.  Boars ranged from $22 to $32 and $10 to $13. 

Pork values closed firm, up $.23 at $97.90.  Butts, hams, ribs, and picnics were all higher.  Loins and bellies were down. Estimated hog slaughter was 472,000 head, up 2,000 on the week, and down more than 12,000 on the year.