Market News

Cattle futures mixed ahead of widespread direct business

At the Chicago Mercantile Exchange, live cattle were mixed, feeders were up waiting on direct business to develop.  October live cattle closed $1.17 lower at $215.85 and December live cattle closed $.75 lower at $218.47.  October feeder cattle closed $.37 higher at $325.80 and November feeder cattle closed $.90 higher at $321.35. 

Direct cash cattle trade activity was quiet again Wednesday.  Bids were not floated.  Asking prices were noted at $225 live in the South, but were not established in the North.  It’s more than likely significant trade volume will hold out until the end of the week. 

At the Four-State Stockyards in Missouri, feeder steers and heifers sold mostly $2 to $5 higher.  The USDA says supply was light on a moderate demand.  Receipts were up on the week.  Feeder supply included 53 percent steers with 20 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 436 to 449 pounds brought $435 to $455 and feeder steers 555 pounds brought $385.  Medium and Large 1 feeder heifers 409 to 448 pounds brought $390 to $405. 

Boxed beef was mixed with very good and weak demand for moderate offerings.  Choice was $3.20 higher at $380.77 and Select was $3.05 lower at $352.34. The Choice/Select spread is $28.43. Estimated cattle slaughter was 109,000 head, up 9,000 on the week and down about 11,000 on the year. 

Lean hog futures finished the day lower on profit-taking with ongoing concerns about demand. October lean hogs closed $1.17 lower at $83.07 and December lean hogs closed $.45 lower at $74.60. 

Cash hogs closed mixed with a moderate negotiated run. The cash hog market has struggled with consistency.  Leverage sits with the packers and they’re able to move needed numbers at their pace.  Lately, that’s been at mostly lower prices.  Demand continues to be a focal point for the market, and while there have been some bright spots, there are lingering concerns about long-term strength.  The industry is monitoring the availability of market-ready hogs and hog weights, which were down nearly 3 pounds on the week and the year to 283.4 pounds. Barrows and gilts at the National Daily Direct closed $.90 higher with a base range of $77 to $89.50 with a weighted average of $87.25; the Iowa/Minnesota had no comparison but a weighted average of $87.49; the Western Corn Belt closed $.49 lower with a weighted average of $87.44; the Eastern Corn Belt closed $1.03 lower with a weighted average of $85.06. 

Butcher hog prices at the Midwest cash markets are steady at $62. At Illinois, slaughter sows were steady with moderate demand for light 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 higher, up $1.81 at $93.63.  Bellies were up nearly $14.  Hams were higher.  Loins, ribs, picnics, and butts were all lower. Estimated hog slaughter was 492,000 head, up 16,000 on the week and about even on the year.