Market News

Cattle futures higher, supported by sharply higher beef values

At the Chicago Mercantile Exchange, live and feeder cattle were higher ahead of widespread direct business.  Boxed beef was also sharply higher during the session.  October live cattle closed $.15 higher at $218.92 and December live cattle closed $.80 higher at $219.20.  September feeder cattle closed $.40 higher at $333.35 and October feeder cattle closed $.97 higher at $326.32. 

Direct cash cattle trade activity was quiet Tuesday.  Bids and asking prices didn’t surface.  Showlists are mostly steady in Texas and Nebraska, but higher in Kansas.  Look for significant trade volume to take place in the back half of the week, especially with Friday’s Cattle on Feed report.   

At the Sioux Falls Regional Cattle Auction in South Dakota, feeder steers weighing more than 900 pounds were $5 to $10 lower and feeder heifers were $10 to $20 lower.  The USDA says demand for yearling steers and heifers as moderate.  There were many long strings of yearlings on offer and flesh ranged from light to heavy.  The market was pretty active.  Receipts were up on the week and the year.  Feeder supply included 40 percent steers with 96 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 872 to 899 pounds brought $305 to $332 and feeder steers 951 to 987 pounds brought $309 to $318.  Medium and Large 1 feeder heifers 807 to 848 pounds brought $304 to $310 and feeder heifers 880 to 896 pounds brought $287.75 to $298.75. 

Boxed beef closed sharply higher and higher with solid demand for moderate offerings.  Choice was $11.58 higher at $391.15 and Select was $2.03 higher at $366.29.  The Choice/Select spread is $24.86.  Estimated cattle slaughter was 106,000 head, down 2,000 on the week and down more than 12,000 on the year. 

Lean hog futures finished the day lower on technical selling as the market remains concerned about long-term strength.  October lean hogs closed $1.00 lower at $80.72 and December lean hogs closed $1.60 lower at $70.92. 

Cash hogs closed higher with a large negotiated run.  Processors continue to have leverage and are moving needed numbers at their pace.  Overall, the market is largely focused on demand, and while there are some bright spots in both the global market and domestically, there are lingering concerns about long-term strength. Barrows and gilts at the National Daily Direct closed $.90 higher with a base range of $88 to $95 and a weighted average of $93.52; the Iowa/Minnesota closed $.91 higher with a weighted average of $93.34; the Western Corn Belt closed $.91 higher with a weighted average of $93.34.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are $2 lower at $68. At Illinois, slaughter sows were steady with moderate demand for light offerings at $42 to $54.  Barrows and gilts were $2 lower with moderate demand for light offerings at $58 to $68.  Boars ranged from $22 to $32 and $10 to $13. 

Pork values closed higher, up $.37 at $99.12.  Ribs were sharply higher.  Loins, Bellies, butts, and hams were up.  Picnics were sharply lower.  Estimated hog slaughter was 476,000 head, up 3,000 on the week and down more than 3,000 on the year.