Market News

Cattle futures lower ahead USDA’s On Feed report

At the Chicago Mercantile Exchange, live and feeder cattle were lower, watching direct business develop, ahead of Friday’s Cattle on Feed report from the USDA. October live cattle closed $2.80 lower at $215.65 and December live cattle closed $3.95 lower at $216.25.  October feeder cattle closed $5.27 lower at $324.37 and November feeder cattle closed $4.45 lower at $318.65. 

There was a light round of direct cash cattle trade reported Thursday.  Dressed deals in Nebraska were marked at $350, that’s fully steady with the previous week’s weighted average basis.  No business out of the South yet, but bids were at $220 live in Kansas and $224 in Texas.   

At the Hub City Livestock Market in South Dakota, the best test was on steers 950 to 999 pounds, which were $10 to $12 higher, steers 1000 to 1099 pounds were $20 to $24 higher.  Heifers were not well tested. The USDA says demand was good to very good for yearlings.  There was another large offering of yearlings, with several long strings off grass along with loads out of yards.  Flesh was moderate plus to heavy for cattle coming out of yards, grass cattle were light to moderate flesh.  Quality varied, from plain to attractive.  The market was active.  Receipts were up from last week, but down on the year.  Feeder supply included 63 percent steers with the entire offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 905 to 934 pounds brought $347.50 to $352 and feeder steers 955 to 982 pounds brought $335 to $347.50.  Medium and Large 1 feeder heifers 802 to 848 pounds brought $308.50 to $327.50 and feeder heifers 851 to 884 pounds brought $302.50 to $318. 

Boxed beef was sharply lower with light demand for moderate offerings.  Choice was down $3.66 at $372.15 and Select was $2.69 lower at $351.88.  The Choice/Select spread was $20.27. Estimated cattle slaughter was 102,000 head, down 7,000 on the week and down nearly 17,000 on the year. 

Lean hog futures were mostly lower on spread trade and technical weakness. October lean hogs closed $.22 higher at $78.90 and December lean hogs closed $.35 lower at $69.60. 

Cash hog prices were not reported Thursday, there were just a handful of negotiated purchases.  The cash hog market has struggled with consistent movement.  Demand remains crucial to the market, and while there have been some bright spots in some aspects of both global and domestic demand, there are lingering concerns around long-term strength.  Processors continue to have leverage and are moving needed numbers at their pace, which doesn’t always bode well for higher prices.  The USDA did report a strong week for export sales. The five-day rolling average for barrows and gilts at the National Daily Direct was $83.70; it’s $83.16 for the Iowa/Minnesota; it’s $83.17 for the Western Corn Belt; it’s $81.74 for the Eastern Corn Belt. 

Butcher hog prices at the Midwest cash markets were $2 lower at $60. At Illinois, slaughter sows were steady with moderate demand for light to moderate offerings at $43 to $55.  Barrows and gilts were steady with moderate demand for moderate offerings at $55 to $65.  Boars ranged from $22 to $32 and $10 to $13. 

Pork values closed higher, up $1.19 at $87.54.  Butts, picnics, and hams were sharply higher.  Bellies were firm.  Ribs and loins were lower. Estimated hog slaughter was 488,000 head, up 2,000 on the week and down about 5,000 on the year.