Market News

Cattle futures higher at midweek

At the Chicago Mercantile Exchange, live and feeder cattle were higher, with boxed beef up at middays. August live cattle closed $1.709 higher at $212.45 and October live cattle closed $1.90 higher at $209.70.  August feeder cattle closed $3.00 higher at $309.02 and September feeder cattle closed $308.87. 

There was a light round of direct cash cattle trade business on Wednesday.  Deals in Nebraska were marked at $230 to $231 live, which is steady to $1 lower than the prior week’s weighted averages and $368 to $370 dressed, steady to $2 below the previous week’s weighted averages.  Live deals in the South were marked at $224, about $1 lower than the previous week’s business.    

At the Kingsville Livestock Auction in Missouri, steers sold from steady to $12 higher.  Heifers sold from steady to $5 higher with spots of $20 higher.  The USDA says there was a light to moderate supply, but demand was good.  Receipts were down on the week and the year.  Feeder supply included 54 percent steers and 47 percent of the offering weighed more than 600 pounds.  Medium and Large 1 feeder steers 601 to 643 pounds brought $364 to $382 and feeder steers 703 to 732 pounds brought $335 to $347.50.  Medium and Large 1 feeder heifers 506 to 542 pounds brought $370 to $416 and feeder heifers 620 to 647 pounds brought $330 to $353.50. 

Boxed beef closed mixed with light to moderate demand for moderate offerings.  Choice was $.74 lower at $394.86 and Select was $.25 higher at $380.31.  The Choice/Select spread is $14.55. Estimated cattle slaughter was 122,000 head, up 4,000 on the week and up about 500 on the year. 

Lean hog futures closed mixed on the steady to higher cash business and lower pork values during the session. August lean hogs closed $.95 higher at $107.90 and October lean hogs closed $.42 higher at $93.00. 

Cash hogs closed higher with a solid negotiated run. Global demand for U.S. pork has been strong, which has been adding value to the market.  Domestic demand has also shown some strength lately, likely benefitting from pork being competitively priced in the retail space.  The industry continues to monitor the availability of market-ready hogs and hog weights.  Hog weights are down more than 1 pound on the week to 284.1 pounds, which is also below year-ago levels. Barrows and gilts at the National Daily Direct were up $.51 with a base range of $105 to $114 and a weighted average of $112.06; the Iowa/Minnesota closed $.06 higher with a weighted average of $111.51; the Western Corn Belt closed $.65 higher with a weighted average of $112.06.  Prices at the Eastern Corn Belt were not reported due to confidentiality.   

Butcher hog prices at the Midwest cash markets are steady at $84. At Illinois, slaughter sow prices have been steady with moderate demand for heavy offerings at $61 to $73.  Barrows and gilts were steady with moderate demand for moderate offerings at $65 to $75.  Boars ranged from $25 to $35 and $18 to $25. 

Pork values closed lower, down $1.55 at $110.75.  Butts, ribs, and bellies were all sharply lower.  Hams, loins, and picnics were higher. Estimated hog slaughter was 482,000 head, up 4,000 on the week and up about 15,000 on the year.