Market News

Cattle futures higher, optimistic about cash business

At the Chicago Mercantile Exchange, live and feeder cattle were up, optimistic about this week’s direct business.  August live cattle closed $2.60 higher at $212.35 and October live cattle closed $2.67 higher at $210.60.  August feeder cattle closed $2.65 higher at $303.98 and September feeder cattle closed $2.72 at $303.15.

A light round of direct cash cattle business was reported Wednesday.  Live deals in the South were at $225 to $228, that is $3 to $6 higher than the previous week’s weighted averages.  The rest of cattle country has been quiet.  Look for more trade to develop over the balance of the week.

At the Ozarks Regional Stockyards in Missouri, feeder steers were $8 to $16 higher, while feeder heifers were not well tested.  Steer calves weighing less than 700 pounds were steady to $5 higher.  Heifer calves less than 700 pounds were $6 to $12 higher.  The USDA says demand was good on a moderate supply.  Receipts were up on the week, but down on the year.  Feeder supply included 55 percent steers and 45 percent of the offering weighed more than 600 pounds.  Medium and Large 1 feeder steers 604 to 632 pounds brought $350 to $378 and feeder steers 878 to 896 pounds brought $284 to $295.75.  Medium and Large 1 feeder heifers 500 to 546 pounds brought $340 to $360 and feeder heifers 602 to 639 pounds brought $310 to $331. 

Boxed beef closed mixed with light to moderate demand for moderate offerings.  Choice was $.28 lower at $365.16 and Select closed $.20 higher at $356.72.  The Choice/Select spread was $8.44. Estimated cattle slaughter was 121,000 head – up 2,000 on the week and down more than 2,000 on the year.

Lean hog futures closed higher with support from strength in pork values. July lean hogs closed $.45 higher at $105.02 and August lean hogs closed $1.05 higher at $107.50.

Cash hogs closed higher with a fairly light negotiated run.  Processors had to get aggressive in their procurement efforts to move needed numbers.  Demand remains a priority.  Global demand for U.S. pork has been strong, overall, helping to provide some price support.  But, China remains a wildcard. The industry is optimistic that domestic demand will see a boost with the return of the summer grilling season.  Hog weights were up slightly on the week but are more than 2 pounds below year-ago levels. Barrows and gilts at the National Daily Direct closed $4.21 higher with a base range of $93 to $105 and a weighted average of $103.05; the Iowa/Minnesota closed $.98 higher with a weighted average of $103.29; the Western Corn Belt closed $1.27 higher with a weighted average of $103.46. Prices at the Eastern Corn Belt were not reported due to confidentiality.  Butcher hog prices at the Midwest cash markets are steady at $69.

Pork values closed higher – up $.51 at $106.62.  Bellies, hams, and picnics were all higher. While butts, loins, and ribs were lower. Estimated hog slaughter was 483,000 head – up 4,000 on the week and up less than 4,000 on the year.