Market News

Cattle futures lower to start the week

At the Chicago Mercantile Exchange, live and feeder cattle were lower ahead of the week’s direct business.  October lives closed $1.12 lower at $180.02 and December live cattle closed $.65 lower at $178.95.  September feeder cattle closed $2.10 lower at $239.50 and October feeders closed $2.05 lower at $237.72. 

Direct cash cattle trade activity had a typically quiet start to the week.  Showlists are mixed – higher in Nebraska/Colorado, but lower in Kansas and in Texas.  Significant trade volume will likely be delayed until the latter half of the week.

At the mid-session at the Oklahoma National Stockyards, feeder steers were $2 to $6 higher.  Steer calves were $10 higher on a light test.  Feeder heifers were steady to $4 higher and heifer calves were $7 to $10 higher.  The USDA says demand was good and quality was plain to average.  Sales have recovered nicely following the sharp downturn last week.  Receipts were up on the week and down on the year.  Feeder supply included 68% steers and 66% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 703 to 740 pounds brought $250 to $262.50 and feeder steers 754 to 788 pounds brought $244.50 to $259.  Medium and Large 1 feeder heifers 550 to 586 pounds brought $255 to $278 and feeder heifers 617 to 643 pounds brought $252 to $262.50. 

Boxed beef closed sharply higher and higher on strong demand for moderate offerings.  Choice was $3.12 higher at $315.83 and Select closed $1.58 higher at $300.17.  The Choice/Select spread is $15.66. Estimated cattle slaughter was 112,000 head – down 7,000 on the week and down more than 6,000 on the year.

Lean hog futures ended the day mixed as the market continues to digest the possibilities for both short-term and long-term demand.  October lean hogs closed $.35 higher at $74.32 and December lean hogs closed $.22 lower at $66.07.

Cash hogs closed lower with a fairly light negotiated run.  Processors just weren’t aggressive in their procurement efforts to start the week – and prices reflected that.  The industry continues to monitor the availability of market-ready hogs and hog weights.  Overall, demand for U.S. pork on the global market has been relatively strong, and that’s been helping provide price support.  But, domestic demand has struggled, creating some uncertainty in the market. Barrows and gilts at the National Daily Direct were down $1.05 with a base range of $79 to $84 and a weighted average of $82.48; the Iowa/Minnesota and the Western Corn Belt both had no comparison but a weighted average of $83.  Prices at the Eastern Corn Belt were not reported due to confidentiality.

Butcher hog prices at the Midwest cash markets are $2 higher in Dorchester, Wisconsin at $60 and steady in Garnavillo, Iowa at $69. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $45 to $57.  Barrows and gilts were steady with moderate demand for moderate offerings at $48 to $58.  Boars ranged from $18 to $28 and $8 to $15. 

Pork values closed higher – up $1.61 at $100.27.  Bellies were sharply higher.  Loins, ribs, and butts were also higher.  Picnics and hams were weak to sharply lower. Estimated hog slaughter was 483,000 head – up 72,000 on the week and up about 17,000 on the year.