Market News

Cattle futures higher ahead of widespread direct business

At the Chicago Mercantile Exchange, live and feeder cattle were up, optimistic about this week’s direct business.  October lives closed $1.97 higher at $217.82 and December live cattle closed $1.12 higher at $219.60.  October feeder cattle closed $1.72 higher at $327.55 and November feeder cattle closed $1.42 higher at $322.77. 

Direct cash cattle trade activity remained relatively quiet through Thursday.  Bids did surface at $340 to $348 dressed in North, those were in Nebraska.  Asking prices were at $225 live in the South, while the North was quiet.  Look for significant trade volume to hold out until the end of the week.

At the Hub City Livestock Auction in South Dakota, steers 950 to 1099 pounds were $9 to $12 higher.  The best test was on heifers 950 to 999 pounds, which were $9 to $11 higher.  The USDA says there was another nice yearling offering with cattle coming both off grass and out of yards.  Demand was good to very good for yearlings.  There were a few consignments of spring calves, which were met with mostly good demand, the quality was average to attractive.  Drought conditions continue to drive sales of calves.  The market was active. Receipts were up on the week and the year.  Feeder supply included 67 percent steers with 72 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 466 to 468 pounds brought $450 to $484 and feeder steers 950 to 974 pounds brought $316.25 to $335.50.  Medium and Large 1 feeder heifers 460 to 471 pounds brought $401 to $414 and feeder heifers 954 to 979 pounds brought $300 to $314. 

Boxed beef was lower with light demand for moderate offerings. Choice was $2.40 lower at $378.37 and Select was $.28 lower at $352.06.  The Choice/Select spread is $26.31.  Estimated cattle slaughter was 109,000 head, up 4,000 on the week and down more than 10,000 on the year. 

Lean hog futures closed mostly lower amid ongoing demand uncertainties.  October lean hogs closed $.07 higher at $83.15 and December lean hogs closed $.25 lower at $74.35. 

Cash hogs closed lower with a fairly light negotiated run.  The cash hog market continues to struggle to find consistent direction.  Processors have leverage and can control the pace of business, which means they’re moving needed numbers without having to really bid up.  Demand continues to be a focal point for the industry, and while there have been some bright spots when it comes to both global and domestic demand, there are lingering concerns around long-term strength. Barrows and gilts at the National Daily Direct closed $.39 lower with a base range of $77 to $88 and a weighted average of $86.86; the Iowa/Minnesota closed $.93 lower with a weighted average of $86.56; the Western Corn Belt closed $.58 lower with a weighted average of $86.86.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets were steady at $62. At Illinois, slaughter sows were steady with moderate demand for light 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 lower, down $1.82 at $91.81.  Bellies dropped nearly $12.  Ribs were also sharply lower and butts were down.  Hams, loins, and picnics were higher. Estimated hog slaughter was 493,000 head, up 37,000 on the week and up more than 4,000 on the year.