Market News

Cattle futures higher on an oversold bounce

At the Chicago Mercantile Exchange, live and feeder cattle were supported by an oversold bounce, watching direct business develop. June live cattle closed $.42 higher at $243.50 and August live cattle closed $.97 higher at $240.15.  May feeder cattle closed $.45 higher at $358.87 and August feeder cattle closed $.47 higher at $359.35. 

There was a solid round of direct cash cattle trade that took place across cattle country on Thursday.  Live deals in the South were at $246, that’s $2 lower than the previous week’s business.  Dressed deals in the North were at $386, $2 lower than the prior week’s weighted average basis in Nebraska.  The bulk of the week’s business has likely wrapped, but some cleanup trade is a possibility. 

At the Huss Livestock Market in Nebraska, compared to two weeks ago, steers weighing more than 600 pounds were steady to $5 higher.  Heifers weighing more than 600 pounds were steady to $10 lower.  The USDA says demand was moderate to good from buyers in the crowd and online.  Receipts were up on the week, but down on the year.  Feeder supply included 55 percent steers with 84 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 600 to 640 pounds brought $455 to $467.50 and feeder steers 850 to 894 pounds brought $349 to $362.50.  Medium and Large 1 feeder heifers 660 to 679 pounds brought $383 to $391 and feeder heifers 761 to 784 pounds brought $346.75 to $360. 

Boxed beef closed lower with light demand for moderate offerings.  Choice was down $.69 at $383.50 and Select was $.75 lower at $382.58.  The Choice/Select spread was $.92. Estimated cattle slaughter was 106,000 head, up 2,000 on the week and down more than 10,000 on the year. 

Lean hog futures were higher on short cover. May lean hogs closed $.60 higher at $95.65 and June lean hogs closed $.82 higher at $103.45. 

Cash hog prices were not reported Thursday, there were fairly light negotiated purchases. Processors have leverage and continue to do business at their pace.  Demand is crucial to the market as there are plenty of supplies of market-ready hogs available.  There have been some bright spots on the global market for U.S. pork, but there are long-term concerns that linger.  This week’s export sales from the USDA had pork sales at a marketing year low, down 57 percent from the previous week and down 60 percent from the prior four week average. There’s optimism that the summer grill season could bring a boost to domestic demand as pork remains a competitively priced protein in the retail space. The five-day rolling average for barrows and gilts at the National Daily Direct was $91.12, it’s $92.81 for the Iowa/Minnesota; it’s $92.76 for the Western Corn Belt.  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 $2 lower with moderate demand for light offerings at $45 to $57.  Barrows and gilts were steady with moderate demand for moderate offerings at $45 to $55.  Boars ranged from $8 to $15 and $5 to $8. 

Pork values were lower Thursday, down $.73 at $97.82.  Hams were sharply lower.  Ribs were down.  Picnics, butts, bellies, and loins were all higher. Estimated hog slaughter was 490,000 head, down 1,000 on the week and up about 17,000 on the year.