Market News

Cattle futures higher ahead of On Feed numbers

At the Chicago Mercantile Exchange, live and feeder cattle were higher ahead of Thursday’s On Feed report from the USDA and this week’s direct business.  June live closed $.72 higher at $199.80 and August lives closed $1.02 higher at $196.85.  May feeder cattle closed $1.57 higher at $282.52 and August feeder cattle closed $2.10 higher at $288.25. 

Direct cash cattle trade was quiet again Tuesday.  Bids were elusive, but asking prices did surface around $208 live in the South.  Showlists this week are mixed, somewhat higher in Texas, but lower in Nebraska, Colorado, and Kansas.  Significant trade volume isn’t expected to develop until later in the week.

At the Tina Livestock Auction in Missouri, feeder steers and heifers were mostly steady to $10 higher.  The UDSA says supply was moderate to good with good demand.  Receipts were up on the week, but down on the year.  Feeder supply included 44 percent steers and just 21 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 512 to 545 pounds brought $379 to $397.50 and feeder steers 658 to 667 pounds brought $319 to $326.35.  Medium and Large 1 feeder heifers 465 to 489 pounds brought $345 to $373 and feeder heifers 551 to 573 pounds brought $304 to $330.

Boxed beef closed lower with light demand for solid offerings.  Choice was $.20 lower at $335.43 and Select closed $.61 lower at $315.24.  The Choice/Select spread was $20.19. Estimated cattle slaughter was 122,000 head – even on the week and down more than 2,000 on the year.

Lean hog futures closed mostly higher with support from the steady to higher cash business.  May lean hogs closed $.25 higher at $88.20 and June lean hogs closed $.05 higher at $95.17. 

Cash hogs closed sharply higher with a solid negotiated run. Processors were more aggressive in their procurement efforts on Tuesday and bid up to move needed numbers.  Demand for U.S. pork on the global market has been strong, but there are concerns demand could be impacted by the ongoing rift between the U.S. and China, one of the largest purchasers of U.S. pork.  Pork continues to be a more competitively priced protein in the retail space, and there’s optimism that could provide a boost to domestic demand. Barrows and gilts at the National Daily Direct were $3.85 higher with a base range of $76 to $88 and a weighted average of $85.84; no comparisons at the Iowa/Minnesota but a weighted average of $86.41; the Western Corn Belt had no comparison but a weighted average of $86.39; the Eastern Corn Belt had a weighted average of $81.87.

Butcher hog prices at the Midwest cash markets are steady at $54. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $43 to $55.  Barrows and gilts were steady with moderate demand for moderate offerings at $52 to $62.  Boars ranged from $25 to $35 and $18 to $25. 

Pork values closed lower – down $1.05 at $91.73.  Bellies were sharply lower, picnics and loins were lower.  Hams, butts, and ribs were higher to sharply higher. Estimated hog slaughter was 487,000 head – down 1,000 on the week and up about 5,000 on the year.