Market News

Cattle futures higher, waiting on direct business to develop

At the Chicago Mercantile Exchange, live and feeder cattle were up ahead of widespread direct business.  June live cattle closed $1.82 higher at $208.10, and August live cattle closed $1.42 higher at $203.87.  May feeder cattle closed $1.42 higher at $288.35 and August feeder cattle closed $.92 higher at $292.17. 

Direct cash cattle trade activity was relatively quiet again Wednesday.  There were a handful of deals reported at $213 live in Kansas, but that’s not enough to establish a price trend for the week.  Asking prices were at $214 to $215 live in the South, but didn’t surface in the North.  Significant trade volume is likely going to hold out until the end of the week.

At the Kingsville Livestock Auction in Missouri, steers were $3 to $10 higher and heifers were steady to $5 higher.  A load of fancy 7-weight heifers sold $10 higher.  The USDA says demand was good for moderate supply.  Receipts were down on the week and the year.  Feeder supply included 48 percent steers and 52 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 551 to 585 pounds brought $350 to $388 and feeder steers 654 to 694 pounds brought $328 to $349.  Medium and Large 1 feeder heifers 503 to 539 pounds brought $334 to $357 and feeder heifers 709 to 711 pounds brought $283.50 to $310.

Boxed beef closed mixed with light to moderate demand for heavy offerings.  Choice was $.24 higher at $331.97 and Select closed $3.13 lower at $314.52.  The Choice/Select spread is $17.45.  Estimated cattle slaughter was 122,000 head – down 1,000 on the week and down more than 3,000 on the year.  

Lean hog futures closed mixed on spread trade with pork values lower during the session and cash prices sharply higher. May lean hogs closed $.35 lower at $91.87 and June lean hogs closed $.12 lower at $100.15.

Cash hogs closed higher with a solid negotiated run. Processors were much more aggressive in their procurement efforts Thursday and bid up to move their needed numbers.  There’s some optimism that domestic demand will see a boost, which could help provide additional price support.  The industry continues to monitor demand for U.S. pork on the global market, especially as China has been noticeably absent from pork purchases recently.  Buyers continue to monitor hog weights, which were up slightly on the week, but are still running more than 4 pounds above year-ago levels. Barrows and gilts at the National Daily Direct were $1.87 higher with a base range of $83 to $95 and a weighted average of $91.87; the Iowa/Minnesota was $2.95 higher with a weighted average of $91.96; the Western Corn Belt was $1.93 higher with a weighted average of $92.18.  Prices at the Eastern Corn Belt were not reported due to confidentiality.

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

Pork values closed lower – down $1.70 at $94.08.  All of the primals, except the butts, were lower. Estimated hog slaughter was 488,000 head – down 2,000 on the week and down more than 3,000 on the year.