Market News

Cattle futures lower to start the week

At the Chicago Mercantile Exchange, live and feeder cattle were lower on profit-taking ahead of the week’s direct business. April live cattle closed $1.77 lower at $186.67 and June lives closed $1.42 lower at $182.57.  April feeder cattle closed $2.25 lower at $155.75 and May feeder cattle closed $2.40 lower at $257.77. 

Direct cash cattle trade activity was typically quiet to start the week. Showlists this week are mixed – higher in Texas, but lower in Kansas and Nebraska/Colorado.  Bids and asking prices didn’t surface on Monday.  Look for significant trade volume to be delayed until midweek or later. 

At midsession at the Oklahoma National Stockyards, feeder steers and heifers are selling $3 to $6 higher.  Steer and heifer calves are trading fully $8 to $10 higher.  The USDA says demand was moderate to good.  Grazing cattle are in high demand.  Receipts are down on the week and the year.  Feeder supply included 54% steers and 57% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 559 to 597 pounds brought $297 to $330 and feeder steers 758 to 792 pounds brought $245 to $251.  Medium and Large 1 feeder heifers 651 to 692 pounds brought $234 to $247 and feeder heifers 812 to 819 pounds brought $212 to $232.50. 

Boxed beef closed mixed on light to moderate demand for moderate offerings.  Choice was $1.02 higher at $306.30 and Select closed $.57 lower at $295.17.  The Choice/Select spread is $11.13. Estimated cattle slaughter was 116,000 head – down 6,000 on the week and down more than 8,500 on the year.

Lean hog futures closed mixed, as long-term demand uncertainties linger. April lean hogs closed $1.80 lower at $86.27 and May lean hogs closed $.07 lower at $91.97. 

Cash hogs closed higher with a moderate negotiated run.  Processors had to get more aggressive in their procurement efforts to start the week and bid up to move needed numbers. Global demand for US pork has been strong and continues to provide price support.  The industry continues to watch the availability of market-ready hogs and hog weights. Barrows and gilts at the National Daily Direct closed $1.49 higher with a base range of $71 to $75 and a weighted average of $74.16; the Iowa/Minnesota closed $.37 higher with a weighted average of $74.53; the Western Corn Belt closed $.35 higher with a weighted average of $73.78; the Eastern Corn Belt was $3.29 higher with a weighted average of $72.90.

Butcher hog prices at the Midwest cash markets are steady at $55. At Illinois, slaughter sow prices were $2 higher with moderate demand for moderate offerings at $44 to $56.  Barrows and gilts were $2 higher with moderate demand for moderate offerings at $42 to $52.  Boars ranged from $15 to $25 and $8 to $15.

Pork values closed lower – down $1.63 at $92.32. Bellies, hams, picnics, and loins were sharply lower and lower.  Butts and ribs were higher. Estimated hog slaughter was 493,000 head – up 1,000 on the week and up nearly 27,000 on the year.