Market News

Cattle futures lower ahead of On Feed report

At the Chicago Mercantile Exchange, live and feeder cattle were lower ahead of widespread direct business and Friday’s On Feed report.  June live cattle closed $.65 lower at $183.52 and August live cattle closed $.60 lower at $181.07.  August feeder cattle closed $1.45 lower at $261.45 and September feeder cattle closed $1.02 lower at $262.72. 

A light to moderate round of direct cash cattle business developed Thursday.  Live deals in the South were $1 higher than last week’s weighted averages at $187.  Live deals in Nebraska were at $192.  Dressed deals in Nebraska were at $304, $5 higher than the previous week’s business.  More trade is expected to develop before the end of the day Friday.

At the Mitchell Livestock Auction in South Dakota, feeder steers up to 850 pounds sold with an unevenly steady undertone, and steers 900 pounds, and up sold on a higher undertone.  Heifers up to 850 pounds sold with a lower undertone, and heifers 900 to 950 pounds were steady.  The USDA says demand was good.  There were a couple of load lots in the day’s offering.  Receipts were down on the week and the year.  Feeder supply included 55 percent heifers and 85 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 603 to 610 pounds brought $317.50 to $319 and feeder steers 905 to 931 pounds brought $223 to $238.75. Medium and Large 1 feeder heifers 766 to 774 pounds brought $232 to $243 and feeder heifers 904 to 941 pounds brought $210.25 to $218.85. 

Boxed beef closed mixed with light to moderate demand for moderate offerings.  Choice was $2.33 lower at $309.84 and Select closed $.47 higher at $300.08.  The Choice/Select spread is $9.76. Estimated cattle slaughter was 122,000 head – down 2,000 on the week and down a little more than 2,000 on the year. 

Lean hog futures ended the day lower, pressured by the lower trend in pork. June lean hogs closed $.87 lower at $94.52 and July lean hogs closed $.65 lower at $97.47. 

Cash hogs closed higher with a fairly light negotiated run. The cash hog market has struggled with consistency recently.  Processors had to get a little more aggressive in their procurement efforts.  Demand for U.S. pork remains solid on the global market, that was confirmed by another strong week for export sales.  Domestic demand is also seeing some strength.  Both help provide some price support. Barrows and gilts at the National Daily Direct closed $.44 higher with a base range of $86 to $90 and a weighted average of $88.27; the Iowa/Minnesota closed $.11 higher with a weighted average of $88.63; the Western Corn Belt closed $.29 higher with a weighted average of $88.63.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $35 to $47.  Barrows and gilts were steady with moderate demand for moderate offerings at $51 to $61. Boars ranged from $18 to $28 and $8 to $15. 

Pork values closed lower – down $1.36 at $98.69. Bellies closed sharply lower.  Hams, picnics, and ribs were lower.  Butts and loins were higher. Estimated hog slaughter was 485,000 head – up 6,000 on the week and up about 16,000 on the year.