Market News

Cattle futures lower at midweek

At the Chicago Mercantile Exchange, live and feeder cattle were lower on technical liquidating, waiting on direct business to develop. June live cattle closed $.35 lower at $251.07 and August live cattle closed $.40 lower at $246.12.  May feeder cattle closed $3.90 lower at $370.95 and August feeder cattle closed $3.62 lower at $372.20. 

Direct cash cattle trade activity was relatively quiet again Wednesday.  Bids did surface at $248 live in Kansas.  Asking prices were at $252-plus live in Texas.  The rest of cattle country had been quiet.  Look for significant trade volume to take place sometime Thursday or Friday. 

At the Kingsville Livestock Auction in Missouri, steers were $3 to $10 higher, and heifers were steady to $5 higher.  The USDA says demand was good to very good for the moderate to heavy supply.  There were several fancy groups of mostly un-weaned calves and quality yearling steers on offer.  Receipts were up on the week, but down on the year.  Feeder supply included 62 percent steers with 42 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 601 to 635 pounds brought $442.50 to $485 and feeder steers 906 to 949 pounds brought $338.50 to $363.75.  Medium and Large 1 feeder heifers 452 to 489 pounds brought $492.50 to $535 and feeder heifers 611 to 628 pounds brought $392.50 to $429. 

Boxed beef closed lower with light demand for moderate offerings.  Choice was down $1.22 at $381.98 and Select was $1.22 lower at $378.58.  The Choice/Select spread is $3.40. Estimated cattle slaughter is 109,000 head, even on the week and down nearly 13,000 on the year. 

Lean hog futures were mixed on cash and wholesale inconsistencies.  May lean hogs closed $.15 lower at $94.07 and June lean hogs closed $.50 lower at $101.95. 

Cash hogs closed higher with a fairly light negotiated run. Processors have been a little more aggressive in their procurement efforts and bidding up to move needed numbers.  But, overall, the market has struggled to find consistent direction.  There have been some bright spots when it comes to demand for US pork on the global market, but there continues to be long-term uncertainties that linger.  Summer grilling season is just around the corner, which could provide a boost to domestic demand, especially as pork remains a competitively priced protein in the retail space.  Hog weights are up slightly on the week and the year.  Supplies of market-ready hogs remain ample. Barrows and gilts at the National Daily Direct were $1.11 higher with a base range of $89 to $92.50 and a weighted average of $91.88; the Iowa/Minnesota closed $1.00 higher with a weighted average of $91.80; the Western Corn Belt closed $.94 higher with a weighted average of $91.88.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets were steady at $64. 

Pork values closed sharply lower, down $3.46 at $95.14.  Bellies dropped more than $14.  Ribs, hams, picnics, and loins were all sharply lower.  Butts were sharply higher. Estimated hog slaughter 494,000 head, up 5,000 on the week and up about 3,000 on the year.