Market News

Cattle futures lower ahead of widespread direct business

At the Chicago Mercantile Exchange, live and feeder cattle were lower watching direct business.  Feeders led the way down on the higher move in corn. October live cattle closed $2.52 lower at $223.80 and December live cattle closed $2.90 lower at $222.80.  September feeder cattle closed $5.90 lower at $339.35 and October feeder cattle closed $6.30 lower at $330.40. 

There was a light round of direct cash cattle trade on Wednesday.  Dressed deals in Nebraska were marked at $368, which is $2 lower than the previous week’s weighted average basis.  However, there’s not enough business yet to establish a full price trend for the week.  Look for more trade to take place before the end of the day Friday.

At the Four State Stockyards in Missouri, feeder steers and heifers were mostly steady.  The USDA says supplies were light, but demand was good.  Receipts were down on the week.  Feeder supply included 51 percent steers with 23 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 501 to 548 pounds brought $428 to $455 and feeder steers 660 to 683 pounds brought $380 to $390.  Medium and Large 1 feeder heifers 460 to 496 pounds brought $402 to $432 and feeder heifers 812 pounds brought $334. 

Boxed beef closed higher with solid demand for moderate offerings.  Choice was $.97 higher at $372.28 and Select was $.01 higher at $349.81.  The Choice/Select spread was $22.47.  Estimated cattle slaughter was 106,000 head, even on the week and down more than 11,000 on the year. 

Lean hog futures closed higher on oversold signals.  October learn hogs closed $.22 higher at $83.55 and December lean hogs closed $.57 higher at $74.70. 

Cash hogs closed mixed with fairly light negotiated purchases.  Processors continue to move needed numbers without having to get too aggressive in their procurement efforts.  The market remains largely focused on demand.  There continues to be bright spots in both the global and domestic markets, but there are still lingering concerns about long-term strength.  The trade is monitoring the availability of market-ready hogs and hog weights.  Hog weights are up a half-pound on the week and are more than 1.5 pounds heavier than last year at this time. Barrows and gilts at the National Daily Direct closed $.51 lower with a base range of $90 to $97.50 with a weighted average of $95.81; the Iowa/Minnesota closed $.10 higher with a weighted average of $96.42; the Western Corn Belt closed $.23 lower with a weighted average of $96.06.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are $4 lower at $66.  At Illinois, slaughter sows were steady with moderate demand for light offerings at $42 to $54.  Barrows and gilts were steady with moderate demand for light offerings at $60 to $70.  Boars ranged from $22 to $32 and $10 to $13. 

Pork values closed lower, down $1.33 at $100.15.  Hams, loins, butts, and bellies were all lower.  Ribs and picnics were higher. Estimated hog slaughter was 484,000 head, even on the week and up about 6,000 on the year.