Market News

Cattle futures lower ahead of direct business

At the Chicago Mercantile Exchange, live and feeder cattle were lower waiting on the week’s direct business to develop.  June live cattle closed $1.22 lower at $245.80 and August live cattle closed $.50 lower at $242.37.  May feeder cattle closed $3.72 lower at $366.62 and August feeder cattle closed $3.77 lower at $366.05. 

Direct cash cattle trade activity was quiet again Tuesday.  Bids and asking prices were not established.  Showlists for the week are lower across all major feeding areas.  The bulk of the week’s business is expected to hold out until sometime Thursday or Friday. 

At the Callaway Livestock Auction in Missouri, steer calves were sold with a firm to higher undertone.  Steers 600 to 650 pounds sold steady to firm.  The best test came on yearling steers weighing more than 800 pounds were mostly $12 to $15 higher.  Feeder heifers were fully steady to firm.  Heifers 550 to 600 pounds sold $10 higher.  The USDA says demand was good on an overall good quality offering.  Receipts were down on the week, but up on the year.  Feeder supply included 70 percent steers with 58 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 604 to 645 pounds brought $430.50 to $458 and feeder steers 800 to 820 pounds brought $373 to $378.50.   Medium and Large 1 Feeder heifers 553 to 569 pounds brought $432 to $450. 

Boxed beef closed sharply lower with light demand for solid offerings.  Choice was $5.30 lower at $382.74 and Select was $2.04 lower at $386.33.  The Choice/Select spread remains inverted at $3.59. Estimated cattle slaughter 113,000 head, up 5,000 on the week and down more than 8,000 on the year. 

Lean hog futures closed mixed on spread trade.  May lean hogs closed $.37 lower at $98.40 and June lean hogs closed $.65 lower at $107.05. 

Cash hog prices had no comparison, with solid negotiated purchases.  The cash hog market has struggled with consistency.  Processors have leverage and have been moving needed numbers at their pace.  Demand remains a priority for the market.  And while there have been some bright spots on the global market when it comes to demand for U.S. pork, there are long-term concerns that have lingered.  There appears to be some opportunity for a boost to domestic demand as pork remains a competitively priced protein in the retail space. Barrows and gilts at the National Daily Direct had a base range of $88 to $92 and a weighted average of $90.82; the Iowa/Minnesota had a weighted average of $91.42; the Western Corn Belt had a weighted average of $91.36.  Prices at 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 $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 $1.22 at $97.82.  Bellies, picnics, butts, and loins were sharply lower.  Ribs and hams were up. Estimated hog slaughter was 497,000 head, up 2,000 on the week and up about 12,000 on the year.