Market News

Cattle futures higher to close the week

At the Chicago Mercantile Exchange, live and feeder cattle were higher, supported by the week’s direct cash trade and tight market-ready supplies.  June live cattle closed $1.82 higher at $253.90 and August live cattle closed $1.77 higher at $247.92.  August feeder cattle closed $3.45 higher at $361.45 and September feeder cattle closed $3.95 higher at $359.17. 

Direct cash cattle trade was quiet Friday.  For the week, dressed deals in the North had a full range of $400 to $415, mostly $410 to $415, which was $7 to $12 higher than the prior week’s weighted average basis in Nebraska.  Live deals in the South ranged from $260 to $265, mostly $260 to $262, $3 to $5 higher than the previous week’s weighted averages.  

At the Lamoni Feeder Cattle Auction in Iowa, there were two very large consignments of reputation, green, home-raised yearling cattle.  Compared to recent sales, lighter weighted feeder steers and heifers were fully steady with a somewhat lower undertone.  The USDA says demand was very good for the moderate offering both in-house and online.  Receipts were up from the most recent sale.  Feeder supply included 55 percent steers with 80 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 705 to 725 pounds brought $440.25 to $440.75 and feeder steers 801 to 824 pounds brought $377.50 to $399.25.  Medium and Large 1 feeder heifers 675 to 694 pounds brought $377 to $385.50 and feeder heifers 776 to 798 pounds brought $346 to $350.50. 

Boxed beef closed higher with solid demand for moderate offerings.  Choice was $1.80 higher at $389.25 and Select was up $.25 at $389.25.  The Choice/Select spread was even. Estimated cattle slaughter was 100,000 head, up 8,000 on the week and down nearly 4,000 on the year.  Saturday’s estimated kill is 9,000 head, down 4,000 on the week and up about 7,000 on the year. 

Lean hog futures were lower, pressured by technical selling and inconsistent fundamentals. June lean hogs closed $.77 lower at $98.75 and July lean hogs closed $1.20 lower at $103.35. 

Cash hogs closed lower at the major direct markets with a light negotiated run. Processors weren’t very aggressive in their procurement efforts to finish the week.  There are ample supplies of market-ready hogs available, making demand a priority.  There have been some bright spots when it comes to global demand for US pork, but there are still long-term concerns that linger.  Summer grilling season is just around the corner, which could help provide a boost to domestic demand, especially with pork’s competitive price in the retail space. Barrows and gilts at the National Daily Direct were down $1.80 with a base range of $86 to $95 and a weighted average of $91.52 and the Western Corn Belt closed $1.67 lower with a weighted average of $91.65.  Prices at the Iowa/Minnesota and the Eastern Corn Belt were not reported due to confidentiality. 

According to the USDA’s Weekly Feeder Pig report, early-weaned pigs and feeder pigs were steady.  Trade was moderate to active with moderate demand for moderate offerings.  The weighted average for early-weaned pigs was $69.46 and the weighted average for feeder pigs was $109.46. 

Butcher hog prices at the Midwest cash markets are $3 higher at $69. At Illinois, slaughter sows were steady with moderate demand for light offerings at $47 to $59.  Barrows and gilts were steady with moderate demand for moderate offerings at $47 to $57.  Boars ranged from $8 to $15 and $5 to $8. 

Pork values closed higher, up $1.01 at $97.56.  Hams, picnics, butts, and loins were all higher.  Ribs and bellies were down. Estimated hog slaughter was 445,000 head, down 34,000 on the week and down about 19,000 on the year.  Saturday’s estimated kill is 30,000 head, down 13,000 on the week and up about 10,000 on the year.