Market News

Cattle futures finish the week lower

At the Chicago Mercantile Exchange, live and feeder cattle were lower on technical selling and the higher move in corn. June live cattle closed $1.15 lower at $248.90 and August live cattle closed $1.80 lower at $244.10.  August feeder cattle closed $1.95 lower at $364.22 and September feeder cattle closed $2.42 lower at $362.22. 

Direct cash cattle trade activity was quiet following the solid day of business on Thursday.  For the week, dressed deals in the North were at mostly $402, $3 higher than much of the previous week’s weighted average basis.  Live deals in the South were at mostly $256 to $257, about $2 to $3 higher than the prior week’s weighted averages.  There were a few deals in Kansas reported at $258. 

At the Mitchell Livestock Auction in South Dakota, feeder steers were $10 to $15 higher, with spots of $20 higher.  Feeder heifers were mostly steady, except 700 to 750 pounds and 850 to 900 pounds, which were $10 higher.  The USDA says demand was very good for the large offering of background yearlings and weaned fall calves.  The market was active.  Quality was very attractive throughout the offering, but flesh conditions were inconsistent, from light to very heavy fleshed.  There were many full loads.  Fall calves were very light to moderate fleshed.  Receipts were up from the most recent sale and on the year.  Feeder supply included 63 percent steers with 86 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 612 to 648 pounds brought $439 to $457.50 and feeder steers 972 to 992 pounds brought $329 to $349.50.  Medium and Large 1 feeder heifers 655 to 696 pounds brought $375 to $395 and feeder heifers 1067 to 1087 pounds brought $261 to $271.75. 

Boxed beef closed higher with solid demand for solid offerings.  Choice was $1.45 higher at $388.39 and Select was $.59 higher at $385.01.  The Choice/Select spread is $3.38. Estimated cattle slaughter was 92,000 head, up 2,000 on the week and up about 1,000 on the year.  Saturday’s estimated kill is 13,000 head, up 3,000 on the week and up about 12,000 on the year. 

Lean hog futures closed mixed, adjusting spreads, with ongoing concerns about pork demand.  June lean hogs closed $.75 lower at $98.62 and July lean hogs closed $.25 higher at $103.20. 

Cash hogs closed sharply higher with a very light negotiated run. It’s been a very inconsistent week of business for the cash hog market.  Processors have been moving needed numbers at generally lower prices and runs have been smaller.  Supplies of market-ready hogs are ample, and hog weights are still above year-ago levels.  That makes demand even more important to the market.  There have been some bright spots globally, but there are still long, term concerns lingering.  Domestic demand could find some support with the return of summer grilling season and the competitive price of pork in the retail space. Barrows and gilts at the National Daily Direct closed $3.07 higher with a base range of $90 to $95 and a weighted average of $93.77.  Prices at the Regional Direct Markets were not reported due to confidentiality. 

According to the USDA’s Weekly Feeder Pig report, early-weaned pigs were steady to weak and feeder pigs were $4 lower.  The trade was moderate to active with moderate demand for moderate to heavy offerings for early-waned pigs, while feeder pigs were met with light to moderate demand for moderate offerings.  The weighted average for early-weaned pigs was $72.23 and the weighted average for all feeder pigs was $108.55. 

Butcher hog prices at the Midwest cash markets are steady at $66 in Dorchester, Wisconsin and were steady this week in Red Oak, Iowa at $59.  

Pork values closed higher, up $1.96 at $97.56.  Loins were sharply higher.  Ribs, bellies, butts, and hams were all higher.  Picnics were sharply lower.   Estimated hog slaughter was 479,000 head, up 18,000 on the week and up about 5,500 on the year.  Saturday’s estimated kill is 43,000 head, down 2,000 on the week and up a little more than 3,000 on the year.