Market News

Cattle futures higher watching direct business develop

At the Chicago Mercantile Exchange, live and feeder were higher, optimistic about direct business.  October live cattle closed $1.57 higher at $229.47 and December live cattle closed $1.40 higher at $228.67.  September feeder cattle closed $2.22 higher at $348.37 and October feeder cattle closed $2.27 higher at $339.42. 

There was a light round of direct cash cattle trade that took place Wednesday.  Dressed deals in Nebraska were marked at mostly $370, that’s $2 to $3 higher than the prior week’s weighted average basis. There were also a few noted at $371.  Bids in the rest of cattle country were at $230 to $235 live.  Look for additional trade to develop over the balance of the week.

At the Ozarks Regional Stockyards in Missouri, feeder steers and heifers were $15 to $20 higher.  The USDA says demand was good on a light supply.  Receipts were up from the week and down on the year.  Feeder supply included 54 percent steers with 35 percent of the offering weighed more than 600 pounds.  Medium and Large 1 feeder steers 617 to 640 pounds brought $400 to $428 and feeder steers 758 to 772 pounds brought $335 to $356.  Medium and Large 1 feeder heifers 450 to 494 pounds brought $417.50 to $440 and feeder heifers 553 to 556 pounds brought $375 to $392.50. 

Boxed beef closed mixed with light and moderate demand for moderate offerings.  Choice was $1.68 lower at $367.97 and Select closed $1.56 higher at $348.06.  The Choice/Select spread was $19.91. Estimated cattle slaughter was 106,000 head, down 1,000 on the week and down more than 8,000 on the year. 

Lean hog futures closed lower on the steady to lower cash business.  October lean hogs closed $1.32 lower at $83.02 and December lean hogs closed $1.12 lower at $74.65. 

Cash hogs closed lower with a solid negotiated run. Processors continue to have leverage and are controlling the pace of business.  However, the trade remains very focused on demand, both on the global market and domestically.  While there have been some bright spots for exports, there are lingering long-term concerns.  Pork continues to be a competitively priced protein in the retail space, which could bolster domestic demand. Hog weights are down a half-pound on the week and are slightly higher than the previous week. Barrows and gilts at the National Daily Direct were $.64 lower with base range of $92 to $100 and a weighted average of $99.01; the Iowa/Minnesota closed $.94 lower with a weighted average of $99.64; the Western Corn Belt closed $1.13 lower with a weighted average of $99.45; the Eastern Corn Belt had no comparison but a weighted average of $96.72. 

Butcher hog prices at the Midwest cash markets are steady at $68. At Illinois, slaughter sows were steady with moderate demand for moderate offerings at $40 to $52.  Barrows and gilts were $2 lower with moderate demand for moderate offerings at $62 to $72.  Boars ranged from $22 to $32 and $10 to $13. 

Pork values were lower, down $1.08 at $99.83.  All of the primals finished the day lower.   Estimated hog slaughter was 484,000 head, up 13,000 on the week and up about 16,000 on the year.