Market News

Cattle futures higher to start the week

At the Chicago Mercantile Exchange, live and feeder cattle finished the day higher on oversold signals.  August live cattle closed $2.10 higher at $226.52 and October live cattle closed $2.60 higher at $223.30.  August feeder cattle closed $6.05 higher at $352 and September feeder cattle closed $6.90 higher at $346.25. 

Direct cash cattle trade activity was quiet Monday, which is typical to start the week.  Bids and asking prices weren’t established.  Significant trade volume isn’t expected until the latter half of the week. 

At the Joplin Regional Stockyards in Missouri, feeder steers weighing less than 750 pounds were $15 to $35 lower.  Heavier weights were $2 to $15 lower.  Feeder heifers were $15 to $35 lower.  The USDA says supply was light and demand was moderate.  The offering consisted of mainly plain cattle, especially compared with last week.  Receipts were down on the week and the year.  Feeder supply included 67 percent steers with 69 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 662 to 679 pounds brought $382 to $385 and feeder steers 906 to 908 pounds brought $338.50 to $341.50.  Medium and Large 1 feeder heifers 608 to 641 pounds brought $367 to $384 and feeder steers 811 to 813 pounds brought $324 to $328. 

Boxed beef was sharply higher and firm with solid demand for moderate offerings. Choice was $3.29 higher at $370.10 and Select was $.16 higher at $355.45.  The Choice/Select spread is $14.65. Estimated cattle slaughter was 106,000 head, up 1,000 on the week and about 1,500 on the year. 

Lean hog futures were mixed, adjusting spreads and monitoring demand.  August lean hogs closed $.37 lower at $101.27 and October lean hogs closed $.22 lower at $87.72. 

Cash hogs closed lower with a moderate negotiated run.  The cash hog market has struggled with consistency.  Pork is a competitively priced protein in the retail space, which is helping domestic demand.  That could help provide some price support.  Have been some bright spots when it comes to global demand for US pork, but there are concerns about long-term strength.  Processors continue to control the pace of business, so their need for hogs will set the tone for the week. Barrows and gilts at the National Daily Direct were down $.43 with a base range of $94 to $100 and a weighted average of $98.89 and there was no comparison but a weighted average of $99.45 for the Eastern Corn Belt.  Prices at the Iowa/Minnesota and the Western Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are $4 higher at $66. At Illinois, slaughter sows were steady with moderate demand for moderate offerings at $35 to $50.  Barrows and gilts were steady with moderate demand for moderate offerings at $60 to $70.  Boars ranged from $22 to $32 and $10 to $13. 

Pork values closed lower, down $1.31 at $103.10.  Bellies, hams, butts, and loins were all lower.  Ribs and picnics were higher. Estimated hog slaughter was 440,000 head, down 3,000 on the week and down more than 7,000 on the year.