Market News

Cattle futures higher waiting on direct trade

At the Chicago Mercantile Exchange, live and feeder cattle were higher, optimistic about higher direct business and the lower move in corn. June live cattle closed $.12 higher at $245.92 and August live cattle closed $.05 higher at $242.42.  May feeder cattle closed $1.37 higher at $368 and August feeder cattle closed $1.90 higher at $367.95. 

Direct cash cattle trade activity was quiet again Wednesday.  Bids didn’t surface.  Asking prices in Texas were floated at $250-plus live, but the rest of cattle country was quiet.  Look for significant trade volume to hold out until sometime Thursday or Friday. 

At the Ozarks Regional Stockyards in Missouri, steer calves weighing more than 550 pounds were $8 to $12 higher with lighter weight steers bringing $15 to $20 higher.  Heifer calves were $10 to $20 higher.  The USDA says demand was very good on a moderate supply.  Receipts were up on the week.  Feeder supply included 63 percent steers with 37 percent of the offering weighed more than 600 pounds.  Medium and Large 1 feeder steers 550 to 591 pounds brought $475 to $510 and feeder steers 618 to 648 pounds brought $437.50 to $479.  Medium and Large 1 feeder heifers 553 to 583 pounds brought $410 to $450 and feeder heifers 622 to 633 pounds brought $400 to $430. 

Boxed beef closed sharply lower with light demand for moderate offerings.  Choice was $3.08 lower at $379.66 and Select was $4.06 lower at $382.27.  The Choice/Select spread remains inverted at $2.61. Estimated cattle slaughter 109,000 head, down 2,000 on the week and down almost 14,000 on the year. 

Lean hog futures closed lower amid ongoing concerns about demand.  May lean hogs closed $2.02 lower at $96.37 and June lean hogs closed $2.40 lower at $104.65. 

Cash hogs had no comparison, with moderate negotiated purchases.   Processors have been able to move needed numbers at their pace.  Supplies of market-ready hogs are ample and while hog weights have declined slightly to 291.1 pounds, it is still relatively high. Demand, overall, has been strong.  There have been bright spots when it comes to the global market, but there are still concerns that linger.  There’s potential that domestic demand could see a boost as pork remains a competitively priced protein in the retail space, especially heading into summer grilling season. The five-day rolling average for barrows and gilts at the National Daily Direct is $90.46; it’s $90.95 for the Iowa/Minnesota and it’s $90.96 for the Western Corn Belt. 

Butcher hog prices at the Midwest cash markets were steady at $60. At Illinois, slaughter sow prices were steady with moderate demand for light offerings at $50 to $61.  Barrows and gilts were steady with moderate demand for moderate offerings at $45 to $55.  Boars ranged from $8 to $15 and $5 to $8. 

Pork values closed lower, down $.91 at $96.91.  Bellies, ribs, butts, and picnics were all down significantly.  Loins and hams were higher. Estimated hog slaughter 489,000 head, up 3,000 on the week and up about 3,000 on the year.