Market News

Cattle futures mixed at midweek

At the Chicago Mercantile Exchange, live cattle were up, feeders were mixed, waiting for the rest of the week’s direct business to develop. October live cattle closed $.97 higher at $231.15 and December live cattle closed $1.50 higher at $232.67.  October feeder cattle closed $.47 higher at $350.40 and November feeder cattle closed $.60 lower at $348.27.

Direct cash cattle trade activity was slow to develop Wednesday.  There was some light trade reported in parts of the North at $375, that’s $3 lower than Tuesday’s business and $8 below last week’s levels.  A few bids were on the table at $236 live and $375 dressed.  Those are well below Wednesday’s asking prices of $243 live in the South and $380 dressed in the North.  Significant trade volume could hold out until the end of the week. There was a light round of trade that took place on Tuesday.  Dressed deals in the North were at $378, that’s $5 lower than the prior week’s weighted average basis in Nebraska.  Many of those were marked for delayed delivery.

At the Kingsville Livestock Auction in Missouri, steers and heifers were mostly steady, except yearling steers weighing more than 750 pounds.  Those were mostly $10 lower.  The USDA says demand was moderate to good for a moderate supply.  The offering was mostly yearlings and long-weaned cattle, but there were also some calves in the mix.  Receipts were up on the week, but down on the year.  Feeder supply included 65 percent steers and 67 percent of the offering weighed more than 600 pounds.  Medium and Large 1 feeder steers 671 to 688 pounds brought $400 to $419 and feeder steers 801 to 848 pounds brought $357.50 to $364.  Medium and Large 1 feeder heifers 507 to 549 pounds brought $397.50 to $448 and feeder heifers 722 to 748 pounds brought $357 to $369.50. 

Boxed beef closed sharply lower with light demand for moderate offerings.  Choice was $2.03 lower at $405.64 and Select was $3.28 lower at $383.68.  The Choice/Select spread is $21.96. Estimated cattle slaughter was 118,000 head, down 2,000 on the week and down more than 5,000 on the year. 

Lean hog futures closed mixed on spread trade, with lingering concerns about demand. October lean hogs closed $.70 higher at $96.82 and December lean hogs closed $.42 higher at $88.27. 

Cash hogs closed sharply higher with a solid negotiated run. Processors have been more aggressive in their procurement efforts this week and have been bidding up, likely to obtain their needed numbers.  Overall, the market remains largely focused on demand.  The global demand for U.S. pork has been strong, despite China’s large absence from the buyers’ list.  Pork has remained a competitively priced protein in the retail space, and it is helping support domestic demand. Barrows and gilts at the National Daily Direct were up $1.66 with a base range of $98 to $111 and weighted average of $107.76; the Iowa/Minnesota closed $4.47 higher with a weighted average of $108.39; the Western Corn Belt closed $2.12 higher with a weighted average of $108.36. The Eastern Corn Belt was not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $80. At Illinois, slaughter sow prices were $3 lower with moderate demand for heavy offerings at $70 to $82.  Barrows and gilts were steady with moderate demand for moderate offerings at $63 to $73.  Boars ranged from $25 to $35 and $18 to $25. 

Pork values closed higher, up $.66 at $114.77. Bellies were sharply higher.  Hams were higher.  Loins, picnics, ribs, and butts. Estimated hog slaughter was 490,000 head, up 1,000 on the week and up about 7,000 on the year.