Market News

Cattle futures higher heading into Friday

At the Chicago Mercantile Exchange, live and feeder cattle were up, with bids starting to surface in some feeding areas.  Feeder had additional support from the losses in corn. August live cattle closed $1.17 higher at $242.67 and October live cattle closed $1.70 higher at $235.40.  August feeder cattle closed $5.27 higher at $359.65 and September feeder cattle closed $5.15 higher at $356.52. 

Direct cash cattle trade activity has been pretty quiet.  Bids were floated at $253 live in Kansas and Texas, but those were well below current asking prices of $258 live in the South.  It looks like significant trade volume is going to hold out until sometime Friday.

At the South Central Regional Stockyards in Missouri, feeder steers weighing less than 500 pounds were steady, steers weighing more than 500 pounds were $5 to $10 higher.  Feeder heifers were $5 to $10 higher.  The USDA says demand was good to very good on a moderate supply.  Overall, the quality and condition was outstanding, the market was active.   Receipts were up on the week and the year.  Feeder supply included 63 percent steers with 27 percent of the offering weighed more than 600 pounds.  Medium and Large 1 feeder steers 555 to 595 pounds brought $451 to $497 and feeder steers 600 to 649 pounds brought $430 to $474.50.  Medium and Large 1 feeder heifers 622 to 635 pounds brought $382.50 to $386.50 and feeder heifers 706 to 733 pounds brought $361 to $372.50. 

Boxed beef closed weak and lower with light demand for solid offerings.  Choice is $.08 lower at $393.21 and Select is $2.46 lower at $373.25.  The Choice/Select spread is $19.96.  Estimated cattle slaughter was 105,000 head, down 3,000 on the week and down more than 12,000 on the year. 

Lean hog futures finished the day mixed, on spread trade and demand uncertainty. July lean hogs closed $.22 lower at $96.62 and August lean hogs closed $.47 higher at $95.90. 

Cash hogs closed mixed with a moderate negotiated run. Processors have had multiple days of solid business, so they could have needed numbers on hand.  With ample supplies of market-ready hogs available, demand remains crucial.  There have been some bright spots on the global market, but there are still concerns about long-term strength.  Export sales this week for pork were down 40 percent from the previous week and down 26 percent from the prior 4-week average.  Mexico and Japan remain solid customers.  Summer grilling season is in full swing and that’s an opportunity to bolster domestic demand, especially with pork’s competitive price in the retail space. Barrows and gilts at the National Daily Direct are $.26 lower with a base range of $93 to $98 and a weighted average of $97.26; the Iowa/Minnesota is $.18 higher with a weighted average of $97.88; the Western Corn Belt is $.23 higher with a weighted average of $97.83.  No comparison at the Eastern Corn Belt had a weighted average of $94.20. 

Butcher hog prices at the Midwest cash markets are steady at $60. At Illinois, slaughter sows were steady with moderate demand for light to moderate offerings at $47 to $59.  Barrows and gilts were steady with moderate demand for moderate offerings at $49 to $59.  Boars ranged from $25 to $30 and $15 to $20. 

Pork values closed lower, down $1.49 at $94.47.  Ribs were sharply lower.  Loins and hams were down.  Bellies, picnics, and butts were higher. Estimated hog slaughter was 485,000 head, up 9,000 on the week and up more than 5,000 on the year.