Market News

Cattle futures lower to start the week

At the Chicago Mercantile Exchange, live and feeder cattle were lower, pressured by the higher move in corn and waiting for the week’s direct cash business to develop.  June live cattle closed $.62 lower at $135.80 and August live cattle closed $.95 lower at $137.37.  May feeder cattle closed $2.62 lower at $159.15 and August feeder cattle closed $2.87 lower at $171.47. 

It was a quiet Monday for direct cash cattle trade activity.  Bids and asking prices were slow to surface.  Showlists this week are somewhat larger in Kansas, larger in Texas, and in Nebraska.  Significant trade volume will likely take place midweek or later. 

At the midsession at the Oklahoma National Stockyards, compared to last week feeder steers were $2 to $4 higher.  Feeder heifers were steady to $3 higher.  Steer and heifer calves were unevenly steady.  The USDA says demand was moderate to good and quality was mostly average.  Dry weather conditions continue in the western part of the state.  Receipts were down on the week and the year.  Feeder supply included 63% steers and 64% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 658 to 697 pounds brought $161 to $171.50 and feeder steers 710 to 737 pounds brought $159 to $165.50. Medium and Large 1 feeder heifers 453 to 497 pounds brought $168 to $179 and feeder heifers 601 to 634 pounds brought $158.50 to $163. 

Boxed beef closed mixed with light to moderate demand for light offerings.  Choice closed $1.54 lower at $271.08 and Select closed $.56 higher at $259.46.  The Choice/Select spread is $11.62. Estimated cattle slaughter 118,000 head – down 6,000 on the week and down 1,000 on the year. 

Lean hog futures closed sharply higher, supported by supply concerns and sharply higher pork values during the session.  May lean hogs closed $3.77 higher at $116.52 and June lean hogs closed $3.92 higher at $122.40. 

Cash hog prices had no comparison with a fairly light negotiated run.  Demand for US pork has been strong on the global market, but there are concerns that could dwindle and is adding pressure to prices.  The industry continues to monitor the availability of market-ready hogs, especially as supplies are expected to tighten.  Processors continue to move their desired numbers, and have been able to do so without having to get aggressive in their procurement efforts. Barrows and gilts at the National Daily Direct had no comparison and a base range of $94 to $110 with a weighted average of $97.22.  Prices at the Regional Direct Markets were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets were steady at $80. At Illinois, slaughter sow prices were steady with moderate demand for moderate to heavy offerings at $80 to $92.  Barrows and gilts were steady with moderate demand for moderate offerings at $60 to $69.  Boars ranged from $42 to $47 and $20 to $25.

Pork values closed lower – down $.72 at $109.49. Hams were sharply lower.  Ribs are lower.  Bellies, picnics, butts, and loins are all higher. Estimated hog slaughter is 353,000 head – down 122,000 on the week and down 131,000 on the year.  Friday’s hog slaughter has been revised to 435,000 head.