Market News

Cattle futures mixed ahead of direct business

At the Chicago Mercantile Exchange, live cattle were mostly lower, feeders were mixed, waiting on direct business to develop. August live cattle closed $.57 lower at $308.97 and October live cattle closed $.60 lower at $206.35.  August feeder cattle closed $.05 higher at $302.30 and September feeder cattle closed $.15 higher at $302.60. 

Direct cash cattle trade activity was quiet on Wednesday.  Bids remained elusive.  Asking prices were noted at $228 to $230 live in the South, while the North was quiet.  Significant trade volume will likely hold out until sometime Thursday or Friday. 

At the Lolli Brothers Livestock Market in Missouri, compared to two weeks ago steer calves 400 to 500 pounds were steady to firm on a light test.  Steers 500 to 700 pounds were mostly $10 to $15 lower on a light test.  Heifer calves, weighing less than 600 pounds, also on a light test, sold with a lower undertone.  Heifers 660 to 700 pounds sold with a firm to higher undertone.  Receipts were about steady compared to two weeks ago, but up on the year.  Feeder supply included 23 percent steers and 73 percent of the offering weighed more than 600 pounds.  Medium and Large 1 feeder steers 550 to 590 pounds brought $380.25 to $404.50 and feeder steers 611 to 633 pounds brought $362.50 to $366.50.  Medium and Large 1 feeder heifers 508 to 535 pounds brought $354.25 to $365.00 and feeder heifers 660 to 697 pounds brought $338.25 to $345. 

Boxed beef closed mixed with light to moderate demand for fairly light offerings.  Choice was $.69 higher at $394.94 and Select closed $6.12 lower at $376.29.  The Choice/Select spread widened to $18.65. Estimated cattle slaughter was 118,000 head – up 5,000 on the week and about even on the year.

Lean hog futures closed mixed ahead of the USDA’s Quarterly Hogs and Pigs report. July lean hogs closed $.60 higher at $112.82 and August lean hogs closed $.27 higher at $111.22. 

Cash hogs closed lower with a fairly light negotiated run. Processors weren’t very aggressive in their procurement efforts, and business reflected that.  Overall, the cash hog market has benefited from an uptick in demand.  U.S. pork has continued to see strong demand on the global market, despite ongoing uncertainty surrounding one of its largest customers, China.  Domestic demand has also been strong, especially with pork being a competitively priced protein option in the retail space. The industry continues to monitor available supplies of market-ready hogs and will get additional insight in Thursday’s Quarterly Hogs and Pigs report.  Barrows and gilts at the National Daily Direct closed $.98 lower with a base range of $103 to $114 and a weighted average of $110.51.  Prices at the Regional Direct Markets were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $79. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $59 to $71.  Barrows and gilts were steady with moderate demand for moderate offerings for $65 to $75.  Boars ranged from $25 to $35 and $18 to $25. 

Pork values closed firm, up $.25 at $121.81.  Bellies and hams were higher, while loins, picnics, butts, and ribs were lower. Estimated hog slaughter was 478,000 head – up 18,000 on the week and up about 11,000 on the year.