Market News

Cattle futures higher to end the holiday-shortened week

At the Chicago Mercantile Exchange, live and feeder cattle were higher, watching the cash market. August live cattle closed $1.60 higher at $214.05 and October live cattle closed $1.20 higher at $210.90.  August feeder cattle closed $.47 higher at $309.50 and September feeder cattle closed $.50 higher at $309.37. 

Direct cash cattle trade activity was relatively quiet on Thursday.  Deals for the week were at $368 to $370 dressed in the North, which was steady to $2 lower than the prior week’s weighted averages.  Southern live deals were marked at $222 to $224, steady to $2 lower than the previous week’s business. 

At the Green City Livestock Auction in Missouri, the offering was mostly smaller-sized strings of home-raised calves, most of which were weaned.  The USDA says there were several consignments in pretty thin condition.  The market was active and buyers bid up.  Receipts were down from lats year.  Feeder supply included 58 percent steers and 45 percent of the offering weighed more than 600 pounds.  Medium and Large 1 feeder steers 509 to 548 pounds brought $417.50 to $436 and feeder steers 705 to 740 pounds brought $347 to $369.  Medium and Large 1 feeder heifers 561 to 597 pounds brought $363 to $383 and feeder heifers 653 to 699 pounds brought $334.50 to $354.50. 

Boxed beef closed sharply lower and lower with light demand for moderate offerings.  Choice was $5.11 lower at $389.75 and Select was $1.87 lower at $378.44.  The Choice/Select spread is $11.31.

Estimated cattle slaughter was 115,000 head – up 10,000 on the week. 

Lean hog futures closed mixed on spread trade, with pressure from lower cash and wholesale business.  August lean hogs closed $1.80 lower at $106.10 and October lean hogs closed $.90 lower at $92.10. 

Cash hogs closed lower with a fairly light negotiated run.  Processors weren’t very aggressive in their procurement efforts to finish out the holiday-shortened week.  The cash hog market has struggled with consistency.  While overall demand for U.S. pork has been strong, especially on the global market, there are some concerns about its ability to hold.  Domestic demand has likely been benefiting from pork’s competitive price in the retail space.  The industry continues to monitor the availability of market-ready hogs and hog weights. Barrows and gilts at the National Daily Direct closed $1.85 lower with a base range of $106 to $113.50 and a weighted average of $110.21; the Iowa/Minnesota closed $.92 lower with a weighted average of $110.59; the Western Corn Belt closed $1.24 lower with a weighted average of $110.92.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Pork values closed lower, down $.54 at $110.21.  Hams, bellies, and loins were all lower.  Ribs were weak.  Picnics and butts were higher. Estimated hog slaughter was 407,000 head – down 66,000 on the week.