Market News

Cattle futures lower heading into Friday

At the Chicago Mercantile Exchange, live and feeder cattle finished the day lower on technical selling. June live cattle closed $.72 lower at $252.07 and August live cattle closed $.32 lower at $246.15.  August feeder cattle closed $2.92 lower at $358 and September feeder cattle closed $2.75 lower at $355.22. 

There was another light round of direct cash cattle trade that took place Thursday.  For the week, dressed deals in the North have had a wide range of $400 to $415, mostly $405 to $410, $2 to $7 higher than the previous week’s weighted average basis.  Live business in the South has ranged from $260 to $265, mostly $260 to $262, $3 to $5 higher than prior week’s weighted averages. 

At the Hub City Livestock Market in South Dakota, there was a lighter offering this week.  The best test was on steers 950 to 999 pounds, which were $4 to $10 lower.  There were lower undertones noted on heifers.  The USDA says there were lighter offerings of cattle to grass or background, but were met with very good demand.  There was also good to very good demand for finishing type cattle, depending on flesh conditions.  Quality varied quite a bit on packages.  The market was active.  Receipts were down on the week and the year.  Feeder supply included 60 percent steers with 94 percent of the offering weighing more than 600 pounds.  Medium dn large 1 feeder steers 704 to 718 pounds brought $408 to $439 and feeder steers 958 to 995 pounds brought $339 to $346.  Medium and Large 1 feeder heifers 675 to 698 pounds brought $392 to $400 and feeder heifers 851 to 892 pounds brought $319 to $336. 

Boxed beef closed mixed with light and moderate demand for moderate offerings.  Choice was $1.23 lower at $387.45 and Select was $.42 higher at $389.  The Choice/Select spread is $1.55.   

Estimated cattle slaughter was 108,000 head, down 1,000 on the week and down more than 13,000 on the year.   

Lean hog futures were mixed on spread trade, with ongoing concerns around demand. June lean hogs closed $1.35 lower at $99.52 and July lean hogs closed $1.32 lower at $104.55. 

Cash hogs closed lower with a very light negotiated run.  The cash hog market continues to navigate inconsistency.   There are ample supplies of market-ready hogs available, keeping demand crucial to the market.  Pork export sales were down on the week and the prior 4-week average.  There continues to be some bright spots when it comes to global demand for US pork, but there are ongoing concerns about its long-term strength.  Domestic demand could see a boost with the return of the summer grilling season.

Barrows and gilts at the National Daily Direct were down $2.19 with a base range of $89 to $96 and a weighted average of $93.32.  No comparison at the Iowa/Minnesota or the Western Corn Belt, but weighted averages of $93.14 and $93.32.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $66. 

At Illinois, slaughter sow prices were steady with moderate demand for moderate to heavy offerings at $47 to $59.  Barrows and gilts were steady with moderate demand for moderate offerings at $47 to $57.  Boars ranged from $8 to $15 and $5 to $8. 

Pork values closed higher, up $.52 at $96.55.  Ribs and loins were up sharply.  Bellies were down just a penny.  Butts, picnics, and hams were also lower.  

Estimated hog slaughter was 464,000 head, down 20,000 on the week and down more than 15,000 on the year.