Market News

Cattle futures lower head of On Feed numbers

At the Chicago Mercantile Exchange, live and feeder cattle ended the day lower ahead of Friday’s Cattle on Feed report from the USDA.  April live cattle closed $.85 lower at $118.57 and June live cattle closed $.2.37 lower at $119.65.  March feeder cattle closed $1.40 lower at $135.52 and April feeder cattle closed $3.22 lower at $141.42. 

Another round of light direct cash cattle trade took place in cattle country on Thursday.  Dressed deals in the North were at $180 to $182, $.50 to $2.50 higher than last week’s weighted averages.  Live deals in Iowa were reported at $116, also above last week’s weighted averages.  Some light live trade was reported in the South at $114, fully steady with the week’s previous business.  There was a light round of trade that took place yesterday with deals ranging from $113 to $114.50, mostly $114, which is steady with last week’s weighted averages.  Live deals in the North ranged from $113 to $115.25, mostly $114 and dressed business ranged from $179 to $182, mostly $180.  The bulk of business in the North was fully steady with last week’s business. 

At the Mitchell Livestock Auction in South Dakota, compared to last week feeder steers 650 to 800 pounds were unevenly steady, steers 800 pounds and up were $3 to $6 higher.  Feeder heifers 650 to 750 pounds were unevenly steady and heifers 750 pounds and up were $2 to $6 higher.  The USDA says demand was good and there were Some load lots in the day’s offering.  Receipts were down on the week, but up on the year.  Feeder supply included 60 percent steers and 91 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 767 to 796 pounds brought $131.50 to $140 and feeder steers 861 to 892 pounds brought $133.85 to $136.25.  Medium and Large 1 feeder heifers 711 to 749 pounds brought $121.75 to $131.75 and feeder heifers 760 to 798 pounds brought $128 to $140.     

Boxed beef closed firm on moderate demand for moderate offerings.  Choice closed $.14 higher at $228.61 and Select is $.52 higher at $218.11.  The Choice/Select spread is $10.50. Estimated cattle slaughter is 111,000 head – down 7,000 on the week and 6,000 on the year.  Wednesday’s cattle slaughter has been revised to 114,000 head. 

Lean hog futures ended the day mostly lower on spread trade and profit-taking, largely ignoring cash and wholesale business.  April lean hogs closed $.62 higher at $94.30 and May lean hogs closed $1.07 lower at $95.

Cash hogs closed sharply higher with a big negotiated run.  Packers bid up to move their desired numbers.  Prices have been supported by very strong demand for US pork on both the global market and domestically.  But supply concerns do linger, and the industry is monitoring the availability of market-ready barrows and gilts.  Daily slaughter runs continue at relatively high levels, helping to keep plenty of pork available in the production system. Barrows and gilts at the National Daily Direct closed $1.42 higher with a base range of $82 to $94 and weighted average of $88.26; the Iowa/Minnesota closed $2.94 higher with a weighted average of $91.95; the Western Corn Belt closed $2.48 higher with a weighted average of $91.39.  Prices at the Eastern Corn Belt were not reported due to confidentiality.     

Butcher hog prices at the Midwest cash markets have been steady at $58. At Illinois, slaughter sow prices are steady with very good demand for heavy offerings at $71 to $82.  Barrow and gilt prices were steady with good demand for moderate to heavy offerings at $58 to $64.  Boars ranged from $25 to $30 and $12 to $15. 

Pork values closed sharply higher– up $6 at $106.80.  All of the primals were higher to sharply higher with hams, bellies, and picnics leading the way up. Estimated hog slaughter is 492,000 head- down 4,000 on the week and down 3,000 on the year.