Market News

Cattle futures lower ahead of widespread direct business

At the Chicago Mercantile Exchange, live and feeder cattle were lower, waiting for direct business to develop. August live cattle closed $.57 lower at $209.75 and October live cattle closed $1.27 lower at $207.92.  August feeder cattle closed $.52 lower at $301.22 and September feeder cattle closed $.47 lower at $300.42. 

Direct cash cattle trade activity was quiet on Tuesday.  Bids didn’t surface.  Asking prices in the South were at $226 live in Texas, but weren’t established in the North.  Significant trade volume will likely be delayed until the latter part of the week.

At the Tina Livestock Market in Missouri, compared to two weeks ago, feeders 500 to 550 pounds sold up to $15 higher, other classes and weights sold with firm to higher undertones.  Receipts were up on the week and the year.  Feeder supply included 58 percent steers, and 45 percent of the offering weighed more than 600 pounds.  Medium and Large 1 feeder steers 557 to 596 pounds brought $383 to $405 and feeder steers 876 pounds brought $294.60.  Medium and Large 1 feeder heifers 500 to 534 pounds brought $365 to $382 and feeder heifers 835 pounds brought $285. 

Boxed beef closed lower with light demand for moderate offerings.  Choice was $.56 lower at $365.44 and Select was $1.59 lower at $356.52.  The Choice/Select spread is $8.92.  Estimated cattle slaughter was 121,000 head – up 7,000 on the week and down more than 2,000 on the year.

Lean hog futures ended the day mixed, with questions about domestic and export demand. July lean hogs closed $.40 lower at $104.57 and August lean hogs closed $.55 higher at $106.45. 

Cash hogs had no comparison with a solid negotiated run. Processors ramped up their procurement efforts Tuesday to move larger numbers.  There’s optimism in the industry that domestic demand will see a boost and some price support with the return of the summer grilling season.  Global demand, overall, has been relatively strong, which has been supportive to prices.  But China remains a wildcard. Barrows and gilts at the National Daily Direct had a base range of $93 to $105 and a weighted average of $98.83; the Iowa/Minnesota had no companions but a weighted average of $102.31; the Western Corn Belt had a weighted average of $102.19.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets were steady at $69. 

Pork values closed lower, down $.64 at $106.11.  All of the primals, except the ribs, were lower. Estimated hog slaughter was 482,000 head – up 4,000 on the week and up about 3,000 on the year.