Market News

Cattle futures higher waiting on direct business

At the Chicago Mercantile Exchange, live and feeder cattle were supported by technical buying ahead of widespread direct business.  August live cattle closed $3.32 higher at $231.22 and October live cattle closed $3.47 higher at $227.45.  August feeder cattle closed $2.20 higher at $346.47 and September feeder cattle closed $3.80 at $342.45. 

Direct cash cattle trade activity was quiet again Thursday.  Bids did resurface in Nebraska at $235 live and $365 dressed.  Asking prices were at $234 to $235 live in the South and $370 dressed in the North.    

At the Apache Livestock Auction in Oklahoma, feeder steers were lightly tested with higher undertones noted.  There were not enough feeder heifers offered for a market test.  Steer and heifer calves were unevenly steady on a light test.  The USDA says quality was average on a light run, heat continues to be a factor in sale barn activity in parts of the country.  Receipts were down on the week and the year.  Feeder supply included 38 percent steers with 38 percent of the offering weighed more than 600 pounds.  Medium and Large 1 feeder steers 556 to 595 pounds brought $385 to $419 and feeder steers 706 to 740 pounds brought $351 to $375.  Medium and Large 1 feeder heifers 601 to 645 pounds brought $335 to $340 and feeder heifers 700 to 717 pounds brought $318 to $334. 

Boxed beef was lower with light demand for solid offerings.  Choice was down $2.93 at $360.50 and Select was $1.08 lower at $341.33.  The Choice/Select spread was $19.17.  Estimated cattle slaughter was 102,000 head, down 6,000 on the week and down more than 5,000 on the year. 

Lean hog futures were pressured by technical liquidation. August lean hogs closed $2.25 lower at $98.42 and October lean hogs closed $2.35 lower at $83.35. 

Cash hogs closed lower with a moderate negotiated run.  For the bulk of the week, processors were more aggressive in their procurement efforts and could have needed numbers on hand.  The market is largely focused on demand, both on the globally and domestically.  It was a strong week for export sales, according to the USDA’s report. Those were up 23 percent on the week and up 34 percent from the prior 4-week average.  Mexico continues to be a solid market. Barrows and gilts at the National Daily Direct were $.74 lower with a base range of $92 to $102.50 and a weighted average of $101.05; the Iowa/Minnesota closed $.80 lower with a weighted average of $101.58; the Western Corn Belt closed $.84 lower with a weighted average of $101.05.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are $2 higher at $66. At Illinois, slaughter sows were steady with moderate demand for moderate offerings at $36 to $48.  Barrows and gilts were steady with moderate demand for moderate offerings at $59 to $69.  Boars ranged from $22 to $32 and $10 to $13. 

Pork values closed lower, down $.14 at $101.64.  Hams and ribs were sharply lower.  Loins, butts, picnics, and bellies were higher to sharply lower. Estimated hog slaughter was 485,000 head, up 6,000 on the week and up more than 16,000 on the year.