Market News

Cattle futures higher heading into Friday

At the Chicago Mercantile Exchange, live and feeder cattle were higher, watching direct markets. October live cattle closed $.62 higher at $219.30 and December live cattle closed $.47 higher at $223.17.  October feeder cattle closed $2.45 higher at $338.87 and November feeder cattle closed $2.05 higher at $336.35. 

There was a light round of direct cash cattle business on Thursday.  Deals were reported at $345 to $348 dressed in the North, which is down slightly from last week’s weighted average basis.  Bids did surface in the South at $226 live, but no trade developed yet.

At the Springfield Livestock Marketing Center in Missouri, steers were mostly steady to $7 lower.  Heifers were unevenly steady, from $2 higher to $4 lower.  The USDA says demand was good on a moderate supply.  Receipts were up on the week and the year.  Feeder supply included 44 percent steers and 47 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 658 to 697 pounds brought $365 to $380 and feeder steers 769 pounds brought $350.  Medium and Large 1 feeder heifers 679 pounds brought $345. 

Boxed beef was sharply lower with light demand for moderate offerings.  Choice was $6.00 lower at $376.79 and Select was $7.70 lower at $352.89.  The Choice/Select spread was $23.90. Estimated cattle slaughter was 109,000 head, up 19,000 on the week and down more than 3,000 on the year.

Lean hog futures were lower on technical weakness. October lean hogs closed $1.22 lower at $77.50 and December lean hogs closed $.50 lower at $68.92. 

Cash hogs closed lower with a very light negotiated run.  The cash hog market will likely have a slow finish to the week after a couple of solid days of business.  Packers continue to have leverage and are moving numbers at their pace, which happens to be at lower prices.  They could have what they need on hand, which could lead to a very slow finish to the week.  The industry is also monitoring supplies of market-ready hogs and hog weights. Barrows and gilts at the National Daily Direct were down $.79 with a base range of $75 to $81 and a weighted average of $76.93; the Iowa/Minnesota had no comparison but a weighted average of $76.92; the Western Corn Belt closed $1.07 lower with a weighted average of $76.92.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $60. At Illinois, slaughter sows were steady with moderate demand for moderate offerings at $43 to $55.  Barrows and gilts were steady with moderate demand for moderate offerings at $53 to $63.  Boars ranged from $25 to $35 and $15 to $20. 

Pork values closed higher, up $.34 at $85.29.  Butts, hams, and ribs were all up.  Loins, bellies, and picnics were lower to sharply lower. Estimated hog slaughter was 493,000 head, up 4,000 on the week and down more than 500 on the year.