Market News

Cattle futures lower to start the week

At the Chicago Mercantile Exchange, live and feeder cattle closed lower following Friday’s On Feed numbers and ahead of this week’s direct cash business.  April live cattle closed $.17 lower at $140.30 and June live cattle closed $0.60 lower at $136.77.  April feeder cattle closed $0.75 lower at $160.82 and may feeder cattle closed $0.25 lower at $165.07.

It was as quiet start to the week for direct cash cattle trade activity.  Showlists are mixed, higher in Nebraska/Colorado, but lower in Kansas and Texas.  Bids and asking prices are slow to surface and the bulk of the week’s business will likely take place Wednesday or later. 

At midsession at the Oklahoma National Stockyards, compared to last week feeder steers were $2 to $4 higher.  Feeder heifers were $1 to $3 higher.  Stocker cattle were $5 to $9 higher.  Steer calves were $7 to $10 higher with spots of $15 higher and heifer calves were $5 to $9 higher with instances of $14 higher.  The USDA says demand was very good for lightweight cattle and moderate to good for feeder cattle.  Quality was average to attractive.  Receipts were up on the week and down on the year.  Feeder supply included 60% steers and 64% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 656 to 698 pounds brought $164.00 to $175.00 and feeder steers 757 to 795 pounds brought $148.50 to $163.00.  Medium and Large 1 feeder heifers 700 to 742 pounds brought $143.00 to $154.75 and feeder heifers 753 to 797 pounds brought $140.50 to $147.00.

Boxed beef closed higher on good demand for light offerings.  Choice is $1.23 higher at $263.87 and Select closed $4.18 higher at $256.32.  The Choice/Select spread is $7.55. Estimated cattle slaughter is 124,000 head – up 5,000 on the week and up 7,000 on the year. 

Lean hog futures closed mixed, adjusting spreads.  While demand is strong in the near-term there are long-term concerns creeping into the market.  The Quarterly Hogs and Pigs report from the USDA comes out on Wednesday.  April lean hogs closed $0.10 higher at $107.57 and mailing hogs closed $1.40 higher at $119.30.

Cash hogs closed lower with a solid negotiated run.  The industry continues to monitor the availability of market-ready hogs, especially with Quarterly Hogs and Pigs coming out on Wednesday.  Processors started the week moving their desired numbers without having to aggressively bid up.  Demand for US pork has been strong on the global market and domestically, but there are long-term concerns that are adding pressure to prices. Barrows and gilts at the National Daily Direct closed $2.95 lower with a base range of $98 to $110 and a weighted average of $105.89; the Iowa/Minnesota closed $1.16 lower with a weighted average of $108.43; the Western Corn Belt closed $1.12 lower with a weighted average of $108.39.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are up from last week at $80. At Illinois, slaughter sow prices were $4 higher with moderate demand for moderate offerings at $77 to $88.  Barrows and gilts were steady with moderate demand for moderate offerings at $66 to $73.  Boars ranged from $40 to $45 and $20 to $25. 

Pork values closed lower – down $2.49 at $107.41.  Hams closed sharply lower.  Butts, ribs, and loins were all lower.  Picnics and bellies are higher. Estimated hog slaughter is 476,000 head – up 8,000 on the week and down 7,000 on the year.