Market News

Cattle futures higher to finish the week

At the Chicago Mercantile Exchange, live and feeder cattle were sharply higher watching direct business develop.  April live cattle closed $1.65 higher at $237.25 and June live cattle closed $1.65 higher at $233.85.  March feeder cattle closed $3.35 higher at $367.42 and April feeder cattle closed $2.30 higher at $362.80. 

There was a light direct cash cattle trade that took place on Friday.  Business took all week to develop, and it was worth the wait.  Live deals were marked at $242 to $245, $3 to $6 higher than the previous week’s weighted averages. 

At the Mitchell Livestock Auction in South Dakota, feeder steers 600 pounds and up were unevenly steady.  Feeder heifers 600 pounds and up were $3 to $7 higher.  The USDA says demand was good.  Receipts were down on the week and the year.  Feeder supply included 55 percent steers with 92 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 765 to 792 pounds brought $372 to $384.50 and feeder steers 952 to 999 pounds brought $334 to $345.  Medium and Large 1 feeder heifers 752 to 782 pounds brought $343 to $361 and feeder heifers 908 to 916 pounds brought $321 to $330.

Boxed beef was sharply higher with strong demand for light offerings.  Choice was $2.08 higher at $369.33 and Select was $4.16 higher at $364.53.  The Choice/Select spread was $4.80. Estimated cattle slaughter was 85,000 head, down 5,000 on the week and down nearly 17,000 on the year.  Saturday’s estimated kill is 1,000 head, down 1,000 on the week down nearly 6,500 on the year. 

Lean hog futures closed mostly higher on spread trade and the higher move in cattle.  However, April lean hogs closed $.42 lower at $97.94 and May lean hogs closed $.22 lower at $101.27. 

Cash hogs closed lower with a light negotiated run. Demand remains a big question.  There have been some bright spots both on the global market and domestically, but overall, there continues to be long-term concerns.  Supplies of market-ready hogs are ample, and hog weights have been running well-above year-ago levels.  Processors have leverage and are able to move needed numbers without having to consistently bid up and push prices higher.   Barrows and gilts at the National Daily Direct closed $1.19 lower with a base range of $84 to $86 with a weighted average of $85.39 and the Western Corn Belt closed $1.82 lower with a weighted average of $85.66.  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 were firm and feeder pigs were steady to weak.  Trade was moderate, with moderate to good demand for moderate offerings.  The weighted average for all early-weaned pigs was $92.78 and the weighted average for all feeder pigs was $123.14. 

Butcher hog prices at the Midwest cash markets are $6 higher at $66.

Pork values were lower, down $1.50 at $93.77.  Butts and picnics were both sharply lower.  Ribs, loins, and bellies were lower.  Hams were higher. Estimated hog slaughter was 490,000, up 16,000 on the week and up more 10,000 on the year.  Saturday’s estimated kill is 206,000 head, up 44,000 on the week and up more than 94,500 on the year.