Market News

Cattle futures higher waiting on direct trade

At the Chicago Mercantile Exchange, live and feeder cattle were up on optimism about this week’s direct business.  October live cattle closed $1.45 higher at $218.67 and December live cattle closed $1.90 higher at $222.70.  October feeder cattle closed $2.77 higher at $336.42 and November feeder cattle closed $3.40 higher at $334.30. 

Direct cash cattle trade activity was relatively quiet Wednesday.  Asking prices in Nebraska did surface at $360 dressed, the rest of cattle country was quiet.  Bids were floated at $345 dressed, which was $5 below the week’s previous business and quite a ways from current asking prices.  That could push any significant trade until the end of the week. 

At the Interstate Regional Stockyards in Missouri, feeder steers weighing less than 550 pounds were steady on a light test, steers weighing more than 550 pounds were $3 to $6 lower.  Feeder heifers weighing less than 500 pounds were $5 to $10 higher, heifers weighing more than 500 pounds were steady.  The USDA says demand was moderate to good on a light supply.  Receipts were down on the week, but up on the year.  Feeder supply included 39 percent steers with 33 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 450 to 494 pounds brought $420 to $467.50 and feeder steers 601 to 635 pounds brought $370 to $394.  Medium and Large 1 feeder heifers 452 to 460 pounds brought $407.50 to $429 and feeder heifers 658 to 677 pounds brought $333 to $335. 

Boxed beef was mixed with solid and light demand for moderate offerings.  Choice was $.13 higher at $382.79 and Select was $3.89 lower at $360.59.  The Choice/Select spread is $22.20. Estimated cattle slaughter was 98,000 head, up 4,000 on the week and down more than 19,000 on the year. 

Lean hog futures finished the day mostly lower on profit taking and the weak midday cash and wholesale business.  October lean hogs closed $.65 lower at $78.72 and December lean hogs closed $.27 lower at $69.42. 

Cash hogs closed lower with a moderate negotiated run. Packers have leverage and they’re able to move needed numbers without having to get too aggressive in their procurement efforts.  The industry continues to monitor available supplies of market-ready hogs and hog weights, especially as it relates to demand. Hog weights rose this week to 289.2 pounds, that’s up more than 2 pounds on the week and up 1.5 pounds on the year. Barrows and gilts at the National Daily Direct closed $1.02 lower with a base range of $69 to $79 and a weighted average of $77.72 and the Western Corn Belt closed $.02 lower with a weighted average of $77.99.  Prices at the Iowa/Minnesota and the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $60. At Illinois, slaughter sows were steady with moderate demand for moderate offerings at $43 to $55.  Barrows and gilts were steady with moderate demand for moderate offerings at $53 to $63.  Boars ranged from $25 to $35 and $15 to $20. 

Pork values closed lower, down $2.82 at $84.95.  All of the primals were sharply lower and lower.  Estimated hog slaughter was 486,000 head, even on the week and up more than 2,000 on the year.