Market News

Cattle futures lower waiting on direct trade

At the Chicago Mercantile Exchange, live and feeder cattle are down on profit-taking, waiting for direct business to develop.  October lives closed $2.17 lower at $218.77 and December live cattle closed $2.55 lower at $219.45.  October feeder cattle closed $2.22 lower at $328.02 and November feeder cattle closed $2.90 lower at $323.20. 

Direct cash cattle trade activity was quiet again Tuesday.  Bids and asking prices did not surface.  Showlists this week are mixed acrossed all major feeding areas.  Significant trade volume will likely hold out until sometime Thursday or Friday. 

At the Sioux Falls Regional Cattle Auction, yearling feeder steers and heifers were mostly steady on limited comparable offerings.  The USDA says demand was moderate to good for the long strings of feedyard backgrounded yearlings and good to very good demand for weaned fall calves.  The market was pretty active throughout the day.  Flesh condition was moderate to heavy.  Receipts were up on the week and the year.  Feeder supply included 49 percent steers with 91 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 760 to 792 pounds brought $355.50 to $382.50 and feeder steers 983 pounds brought $312.75.  Medium and Large 1 feeder heifers 808 to 825 pounds brought $311 to $329 and feeder heifers 967 to 981 pounds brought $280 to $282.50. 

Boxed beef closed higher with strong demand for moderate offerings.  Choice was $2.54 higher at $378.89 and Select was $2.08 higher at $357.85.  The Choice/Select spread was $21.04. Estimated cattle slaughter was 105,000 head, down 3,000 on the week and down nearly 15,000 on the year. 

Lean hog futures closed higher on short covering, with hog inventory numbers from USDA out this week.  October lean hogs closed $1.12 higher at $79.27 and December lean hogs closed $1.20 higher at $71. 

Cash hogs closed lower with a big negotiated run.  The cash hog market has struggled with consistency.  Processors do have leverage and continue to move needed numbers at their pace, which recently has been at mostly lower prices. Demand, both global and domestic, are crucial to providing price support, and while there have been some bright spots in both areas, there are ongoing lingering concerns about strength.  The industry is also looking to this week’s Quarterly Hogs and Pigs report. Barrows and gilts at the National Daily Direct closed $.45 lower with a base range of $73 to $85.50 and a weighted average of $79.90; the Iowa/Minnesota closed $.67 lower with a weighted average of $79.78; the Western Corn Belt closed $.67 lower with a weighted average of $79.78.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets were steady at $60. 

Pork values closed lower, down $.92 at $87.99.  Bellies, loins, and ribs were lower.  Butts, picnics, and hams were up. Estimated hog slaughter was 491,000 head, up 3,000 on the week and up about 13,000 on the year.