Market News

Cattle futures lower to start the week

At the Chicago Mercantile Exchange, live and feeder cattle were lower on technical pressure.  October live cattle closed $.52 lower at $226.72 and December live cattle closed $.72 lower at $226.22.  September feeder closed $1.22 lower at $342.55 and October feeder cattle closed $1.65 lower at $33.70. 

Direct cash cattle trade activity is relatively quiet.  Bids were floated in Kansas at $233 live, but asking prices were not established.  Showlists this week are mixed, lighter in Texas and Kansas, but larger in Nebraska and Colorado.  Significant trade volume will likely be delayed until midweek or later. 

At the Joplin Regional Stockyards in Missouri, feeder steers were $10 to $25 higher, with the best demand for those 5-weights.  Feeder heifers were steady to $20 higher, with the most gain on heifers 600 pounds, plus.  The USDA says supply was light with very good demand.  Receipts were up on the week, but down on the year.  Feeder supply included 59 percent steers with 67 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 500 to 531 pounds brought $440 to $480 and feeder steers 614 to 635 pounds brought $400 to $425.  Medium and Large 1 feeder heifers 651 to 688 pounds brought $354 to $380 and feeder heifers 807 to 837 pounds brought $322 to $323. 

Boxed beef closed mixed with solid and light demand for fairly light offerings.  Choice was $5.35 higher at $366.73 and Select was $1.78 lower at $344.45.  The Choice/Select spread is $22.28. Estimated cattle slaughter was 90,000, down 2,000 on the week and down more than 11,000 on the year. 

Lean hog futures closed mixed on spread trade.  October lean hogs closed $1.17 lower at $83.67 and December lean hogs closed $.32 lower at $75.35. 

Cash hogs closed lower with a moderate negotiated run.  Processors aren’t very aggressive in their procurement efforts.  Overall, the cash hog market remains largely focused on demand.  Countries like Mexico are a bright spot when it comes to global demand for U.S. pork, but there are lingering long-term concerns.  Pork’s a competitively priced protein in the retail space, which could provide a boost to the domestic market.  Barrows and gilts at the National Daily Direct are $.96 lower with a base range of $93 to $100 and a weighted average of $99.45; the Iowa/Minnesota closed $1.77 lower with a weighted average of $99.01; the Western Corn Belt closed $2.14 lower with a weighted average of $99.01.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are $1 higher than last week at $67. At Illinois, slaughter sows were $3 higher with light demand for light offerings at $40 to $52.  Barrows and gilts were $4 higher with light demand for light offerings at $60 to $70.  Boar ranged from $22 to $32 and $10 to $13. 

Pork values closed higher, up $.90 at $100.91.  Bellies, hams, and picnics were all up.  Ribs, loins, and butts were lower.  

Estimated hog slaughter was 430,000 head, up 10,000 on the week and down about 3,000 on the year.