Market News

Cattle futures higher on follow-through buying

At the Chicago Mercantile Exchange, live and feeder cattle futures closed sharply higher, supported by follow-through buying and an improved weekly export sales report.  August live cattle closed $1.97 higher at $103.27 and October live cattle closed $2.05 higher at $106.60.  August feeder cattle closed $3.17 higher at $142.60 and September feeder cattle closed $3.20 higher at $142.75. 

Direct cash cattle trade was quiet on Thursday.  There were just a few bids on the table at $96.50 live and $157 dressed, both of those were in Nebraska.  Asking prices were firm at $97 live in the South and $158 to $160 dressed in the North.  There’s been a light to moderate trade develop every day so far this week with live business in the South mostly at $95 and Northern dressed deals mostly at $157 to $160. 

At the Mitchell Livestock Auction in South Dakota, compared to last week, steers up to 950 pounds had an unevenly steady undertone.  Steers 950 and up were $1 to $2 higher.  There was a higher undertone noted on heifers up to 800 pounds.  Heifers 800 to 1000 pounds were $2 to $6 higher and heifers over 1000 pounds were steady.  The USDA says demand was good and there were some load lots in the day’s offering.  Receipts were down on the week and the year.  Feeder supply included 52 percent steers and 97 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 752 to 797 pounds brought $145 to $149.50 and feeder steers 966 to 996 pounds brought $127 to $130.75.  Medium and Large 1 feeder heifers 857 to 898 pounds brought $121 to $128.75 and feeder heifers 908 to 946 pounds brought $110 to $123.85. 

Boxed beef closed steady with moderate demand for moderate offerings.  Choice closed $.04 higher at $200.80 and Select is $.07 lower at $191.30.  The Choice/Select spread is $9.50.  Estimated cattle slaughter is 117,000 head – down 3,000 on the week and down 5,000 on the year. 

Lean hog futures ended the day sharply higher on commercial buying and a positive export sales report.  August lean hogs closed $3.50 higher at $53.65 and October lean hogs closed $2.40 higher at $51.82. 

Cash hogs closed steady to weak with moderate negotiated numbers.  Supplies of market-ready hogs are more than ample and the industry is still trying to work through the backlog of hogs in the supply chain.  But that means more pork will come online making the demand component even more critical to the price picture.  There is rising concern about demand uncertainty.  But some positive news, this week’s export sales report showed an increase in sales, with Mexico and China as the primary destinations.  Barrows and gilts at the National Daily Direct closed $.10 lower with a base range of $30 to $33 for a weighted average of $31.36; the Iowa/Minnesota is $.42 lower for a weighted average of $31.56; the Western Corn Belt closed $.52 lower for a weighted average of $31.42.  The Eastern Corn Belt was not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $20.  At Illinois, slaughter sow prices were weak with good demand for moderate to heavy offerings at $9 to $20.  Barrow and gilt prices were steady with good demand for moderate to heavy offerings at $14 to 422.  Boars ranged from $1 to $3. 

Pork values closed lower – down $1.60 at $67.35.  Picnics closed nearly $8 lower.  Bellies, ribs, and hams were all sharply lower.  Butts closed lower.  Loins closed sharply higher.  Estimated hog slaughter is 468,000 head – down 1,000 on the week and down 4,000 on the year.