Market News

Cattle futures lower, waiting on direct business

At the Chicago Mercantile Exchange, live and feeder cattle were pressured by the drop in boxed beef, waiting for direct business to develop. June lives closed $1.15 lower at $176.47 and August lives closed $1.30 lower at $174.22.  August feeders closed $2.02 lower at $252.40 and September feeders closed $2.05 lower at $253.40.

Direct cash cattle trade activity was quiet for the most part Wednesday. Bids have been slow to surface this week.  Asking prices were around $186 to $187 life in the South, while the North has remained quiet. Significant trade volume could hold out until sometime Thursday or Friday.

At the Interstate Regional Stockyards in Missouri, feeder steers under 700 pounds were steady to $3 higher.  A few steers over 700 pounds were about steady on a light test.  Feeder heifers under 575 pounds were steady to $4 lower and heifers over 575 pounds were $2 to $4 higher.  The USDA says demand was good and supply was moderate.  Feeder supply included 54% steers and 33% of the offering was over 600 pounds.  Receipts were down on the week and the year.  Medium and Large 1 feeder steers 452 to 496 pounds brought $320 to $364 and feeder steers 600 to 641 pounds brought $279 to $302.  Medium and Large 1 feeder heifers 501 to 545 pounds brought $278 to $300 and feeder heifers 557 to 594 pounds brought $259 to $272.   

Boxed beef closed sharply lower on light demand for solid offerings.  Choice was $1.82 lower at $296.67 and Select closed $4.09 lower at $288.25.  The Choice/Select spread is $8.42.  Estimated cattle slaughter was 123,000 head – even on the week and down about 2,000 on the year.

Lean hog futures ended the day mostly higher, supported by stronger pork values during the session. June lean hogs closed $.40 higher at $98.72 and July lean hogs closed $.05 lower at $102.45. 

Cash hogs closed lower with a solid negotiated run. The cash hog market has really been taking the path of least resistance lately.  There’s been an uptick in slaughter pace compared to year-ago levels.  Demand for U.S. pork has been strong on the global market and has been pushing higher domestically as summer grilling season is just around the corner.  The industry continues to monitor the availability of market-ready hogs and hog weights, which were up a pound this week and are running about 2.5 pounds above year-ago levels.

Barrows and gilts at the National Daily Direct closed $1.46 lower with a base range of $82 to $95 with a weighted average of $91.79; the Iowa/Minnesota closed $.14 lower with a weighted average of $93.12; the Western Corn Belt closed $.87 lower with a weighted average of $92.47. Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $50. At Illinois, slaughter sow prices were $1 lower with moderate demand for moderate to heavy offerings at $35 to $47.  Barrows and gilts were steady with moderate demand for moderate offerings at $51 to $61.  Boars ranged from $18 to $28 and $8 to $15. 

Pork values closed higher – up $2.20 at $99.29.  Bellies and loins were sharply higher.  Ribs and hams were higher.  Butts were sharply lower.  Picnics were weak. Estimated hog slaughter was 477,000 head – down 3,000 on the week and up about 12,000 on the year.

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