Market News

Cattle futures lower waiting on direct business

At the Chicago Mercantile Exchange, live and feeder cattle were lower, with boxed beef lower at midday, ahead of the week’s direct business.  June live cattle closed $1.80 lower at $208.40 and August lives closed $1.62 lower at $204.05.  May feeder cattle closed $1.45 lower at $292.57 and August feeders closed $1.87 lower at $295.02. 

Direct cash cattle trade was relatively quiet again Wednesday.  There were some scattered deals reported in the South at $214 live and in the North at $340 to $350 dressed.  However, it wasn’t enough to establish an accurate price trend for the week.  Look for significant trade volume to hold out until sometime Thursday or Friday.

At the Kingsville Livestock Auction in Missouri, steer calves were $8 to $15 higher, and yearlings sold mostly steady.  Heifers were steady to $5 higher, except four loads of fancy, all-black yearlings that sold $15 to $18 higher.  The USDA says demand was good to very good for the heavy offering.  Receipts were up on the week and the year.  Feeder supply included 52 percent steers and 45 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 504 to 547 pounds brought $383 to $422 and feeder steers 556 to 597 pounds brought $264 to $398.  Medium and Large 1 feeder heifers 612 to 647 pounds brought $289 to $315.

Boxed beef closed lower on light demand for fairly light offerings.  Choice was $2.95 lower at $345.31 and Select closed $1.80 lower at $322.02.  The Choice/Select spread is $23.29. Estimated cattle slaughter was 121,000 head – down 1,000 on the week and down about 2,500 on the year.

Lean hog futures closed mixed on spread trade with ongoing concerns about demand certainty.  May lean hogs closed $.62 lower at $91.92 and June lean hogs closed $1.17 lower at $98.27. 

Cash hogs closed mixed with a moderate negotiated run. The industry continues to monitor overall demand for U.S. pork, both on the global market and domestically, as there are concerns about the long-term outlook for both.  Processors were able to move needed numbers without having to get too aggressive in their procurement efforts, as supplies of market-ready hogs are ample and hog weights remain above year-ago levels, ensuring there is plenty of pork available. Barrows and gilts at the National Daily Direct closed $.02 lower with a base range of $85 to $95 and a weighted average of $93.00; the Iowa/Minnesota closed $.29 higher with a weighted average of $93.35; the Western Corn Belt closed $.43 higher with a weighted average of $93.45; the Eastern Corn Belt had no comparison but a weighted average of $88.73.   

Butcher hog prices at the Midwest cash markets are steady at $63. At Illinois, slaughter sow prices were $2 lower with moderate demand for light offerings at $38 to $50.  Barrows and gilts were steady with moderate demand for moderate offerings at $50 to $60.  Boars ranged from $25 to $35 and $18 to $25.

Pork values closed about steady – up $.02 at $96.61. Bellies and ribs were up, while loins, hams, picnics, and butts were lower. Estimated hog slaughter was 487,000 head – up 5,000 on the week and up nearly 10,000 on the year.