Market News

Cattle futures higher to start the week

At the Chicago Mercantile Exchange, live and feeder cattle closed higher, supported by sharply higher boxed beef.  Feeders had additional support from the lower move in corn.  June live cattle closed $2.20 higher at $118.22 and August live cattle closed $1.50 higher at $120.35.  May feeder cattle closed $3.72 higher at $135.45 and August feeder cattle closed $4.42 higher at $148.70. 

It was a quiet Monday for direct cash cattle trade.  Bids and asking prices didn’t surface.  Showlists this week appear to be mixed, higher in Texas, somewhat lower in Kansas, and lower in Nebraska/Colorado.  It’s likely significant trade volume will be delayed until mid-week or later. 

At the Oklahoma National Stockyards, compared to last week feeder steers were steady and feeder heifers were steady to $2 higher.  Steer calves were $2 to $4 higher and heifer calves were steady.  The USDA says demand was moderate to good.  Receipts were up on the week and down on the year.  Feeder supply included 47 percent steers and 79 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 752 to 796 pounds brought $131 to $147.25 and feeder steers 801 to 848 pounds brought $126 to $134.75.  Medium and Large 1 feeder heifers 602 to 649 pounds brought $128 to $141.50 and feeder heifers 707 to 745 pounds brought $115 to $130. 

Boxed beef closed sharply higher on good demand for moderate offerings.  Choice closed $3.23 higher at $309.11 and Select closed $3.49 higher at $293.76.  The Choice/Select spread is $15.35.  Estimated cattle slaughter is 119,000 head – up 5,000 on the week and up 30,000 on the year. 

Lean hog futures ended the day mixed on spread adjustments.  May lean hogs closed $.07 lower at $111.90 and June lean hogs closed $.75 lower at $112.10. 

Cash hogs closed mixed with a fairly light negotiated run.  The recent demand strength on the global market and domestically for US pork has been very supportive to prices, but should a disruption occur, it would likely send prices tumbling.  Packers continue to monitor the availability of market-ready hogs, and remain fairly aggressive in their procurement efforts. Barrows and gilts at the National Daily Direct are $1.48 lower with a base range of $105.77 to $125 and a weighted average of $112.22; the Iowa/Minnesota is $.39 lower with a weighted average of $121.37; the Western Corn Belt is $.35 higher with a weighted average of $121.04.  The Eastern Corn Belt was not reported due to confidentiality. 

Butcher hog prices at the Midwest cash market are $7 higher than their last reported test at $77. 

Pork values closed lower – down $.63 at $113.16.  Hams, bellies, butts, and loins were all lower.  Picnics and ribs were higher.  Estimated hog slaughter is 483,000 head – up 5,000 on the week and up 118,000 on the year.