Market News

Cattle futures lower at midweek

At the Chicago Mercantile Exchange, live and feeder cattle were lower waiting for direct business to develop.  Feeders led the way down on the higher move in corn. October live cattle closed $1.70 lower at $217.22 and December live cattle closed $2.05 lower at $217.15.  September feeder cattle closed $4.22 lower at $329.12 and October feeder cattle closed $4.27 lower at $322.05. 

Direct cash cattle trade activity has been relatively quiet.  Bids surfaced at $225 live and $355 dressed in the North and $225 live in Texas, but those are being passed.  Asking prices were noted in Texas at $230 live.  Business could hold out until late in the week, especially with Friday’s Cattle on Feed report. 

At the Hub City Livestock Auction in South Dakota, the day’s offering was made up of a handful of loads and packages, most of which were met with good demand.  But it was too light of an offering for an accurate price trend.  The USDA says a few of the cattle were off grass, but most were out of yards.  Flesh ranged from moderate to moderate plus and quality was average to attractive.  The market was mostly active, even with a lighter crowd.  Receipts were down on the week and the year.  Feeder supply included 38 percent steers with the entire offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 772 pounds brought $357 and feeder steers 916 pounds brought $320.50.  Medium and Large 1 feeder heifers 900 to 908 pounds brought $304.75 to $310. 

Boxed beef closed mixed with good and light demand for moderate offerings.  Choice was $3.84 higher at $394.99 and Select was $2.12 lower at $364.17.  The Choice/Select spread is $30.82.  Estimated cattle slaughter was 106,000 head, even on the week and down about 10,000 on the year. 

Lean hog futures finished the day higher on short covering. October lean hogs closed $.77 higher at $81.50 and December lean hogs closed $.50 higher at $71.42. 

Cash hogs closed lower with a moderate negotiated run.  Processors continue to have leverage and are moving needed number at their pace.  The market remains largely focused on demand.  Both the global and domestic markets have been bright spots for demand at times, but there are still lingering concerns about long-term strength. The industry is also monitoring the availability of market-ready hogs and hog weights down, which are down a tenth of a pound this week to 282.6 pounds, which is 1.5 pounds higher than year-ago levels. Barrows and gilts at the National Daily Direct closed $2.27 lower with a base range of $88 to $94 and a weighted average of $92.10; the Iowa/Minnesota closed $1.22 lower with a weighted average of $92.12; the Western Corn Belt closed $1.24 lower with a weighted average of $92.10.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are $2 lower at $66. At Illinois, slaughter sows were $1 higher with moderate demand for moderate offerings at $43 to $55.  Barrows and gilts were steady with moderate demand for moderate offerings at $58 to $68.  Boars ranged from $22 to $32 and $10 to $13. 

Pork values closed lower, down $1.54 at $97.58.  Loins, picnics, hams, and butts were all down.  Ribs and bellies were higher. Estimated hog slaughter was 476,000 head, down 8,000 on the week and down about 1,500 on the year.