Market News

Cattle futures lower waiting on direct trade

At the Chicago Mercantile Exchange, live and feeder cattle were lower ahead of widespread direct business and Friday’s On Feed report from the USDA. October live cattle closed $2.25 lower at $218.45 and December live cattle closed $3.15 lower at $220.20.  October feeder cattle closed $4.20 lower at $329.65 and November feeder cattle closed $5.80 lower at $323.10. 

Direct cash cattle trade activity was relatively quiet.  Bids were floated at $224 live in the South and $345 to $348 dressed in the North, but asking prices still have not been established this week.  Look for significant trade to hold out until the end of the week, especially with Friday’s Cattle on Feed report from the USDA.

At the Ozarks Regional Stockyards in Missouri, feeder steers and heifers were $15 to $20 higher.  Steer calves 500 to 700 pounds were $15 to $20 higher.  Heifer calves, 400 to 700 pounds were $20 to $30 higher.  The USDA says demand was very good on a moderate supply.  Receipts were up from the most recent sale, but down on the year.  Feeder supply included 58 percent steers with 65 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 667 to 695 pounds brought $375 to $389 and feeder steers 750 to 785 pounds brought $325 to $355.  Medium and Large 1 feeder heifers 616 to 639 pounds brought $350 to $372.50 and feeder heifers 732 pounds brought $321. 

Boxed beef closed lower with light demand for moderate offerings.  Choice was $.27 lower at $375.81 and Select was down $1.79 at $354.57.  The Choice/Select spread is $21.24. Estimated cattle slaughter was 102,000 head, down 7,000 on the week and down nearly 17,000 on the year. 

Lean hog futures live and feeder cattle were mixed on spread trade. October lean hogs closed $.40 lower at $78.67 and December lean hogs closed $.30 higher at $69.95. 

Cash hogs closed lower with a moderate negotiated run.  Processors were able to move needed numbers without having to get aggressive in their procurement efforts. The industry continues to monitor supplies of market ready hogs and hog weights, which rose 2.5 pounds this week to 285.9, but are below year-ago levels. Demand remains crucial to this market, and while there are bright spots in some areas, there are lingering concerns about long-term demand strength. Barrows and gilts at the National Daily Direct closed $1.98 with a base range of $81 to $84 and a weighted average of $82.60; the Iowa/Minnesota closed $.97 lower with a weighted average of $82.63; the Western Corn Belt closed $.98 lower with a weighted average of $82.63.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are $2 lower at $62. At Illinois, slaughter sows were steady with moderate demand for moderate offerings at $43 to $55.  Barrows and gilts were steady with moderate demand for moderate offerings at $55 to $65. Boars ranged from $22 to $32 and $10 to $13. 

Pork values closed lower, down $1.15 at $86.35.  Bellies, butts, hams, and ribs were all lower.  Loins and picnics were higher. Estimated hog slaughter was 488,000 head, up 2,000 on the week and down about 5,000 on the year.