Market News

Cattle futures mixed heading into Friday

At the Chicago Mercantile Exchange, live and feeder cattle ended the day mixed, watching direct cash business develop.  August live cattle closed $.32 lower at $137.20 and October lives closed $.10 lower at $142.65.  August feeder cattle closed $.37 higher at $176.02 and September feeder cattle closed $.12 higher at $177.37. 

There was a very light, scattered trade reported on Thursday following the light to moderate trade that took place earlier in the week.  Dressed deals were at $225 to $228 in the North.  So far this week, live deals in the South have been at $136, $1 higher than last week’s weighted averages.  Northern dressed business has been at mostly $225 to $226, $3 to $4 higher than last week’s weighted average basis in Nebraska.  Look for some additional trade to develop over the balance of the week. 

At the Winter Livestock Auction in Kansas, compared to last week steers 400 to 950 pounds were $10 to $13 higher on a light test.  Heifers 400 to 940 pounds were $7 to $12 higher, also on a light test.  The USDA says demand was good.  Receipts were down on the week and the year.  Feeder supply included 52% steers and 73% of the offering was over 600 pounds.  Medium and Large1 feeder steers 853 to 884 pounds brought $153.50 to $158.85 and feeder steers 909 to 927 pounds brought $154.75 to $155.  Medium and Large 1 feeder heifers 798 pounds brought $147 and feeder heifers 908 to 947 pounds brought $135.85 to $138. 

Boxed beef ended the day mixed on light to moderate demand for light offerings.  Choice closed $.64 lower at $271.10 and Select closed $.20 higher at $249.61.  The Choice/Select spread is $21.49. Estimated cattle slaughter 126,000 head – down 1,000 on the week and up 4,000 on the year. 

Lean hog futures ended the day lower, pressured by the weak export sales numbers.  July lean hogs closed $2.95 lower at $105 and August lean hogs closed $2.80 lower at $103.10. 

Cash hogs ended the day higher with a solid negotiated run.  Processors were more aggressive in their procurement efforts and bid up to move their desired numbers.  The industry continues to monitor the availability of market-ready hogs.  Demand on the global market for US pork has been strong, helping provide significant price support. Barrows and gilts at the National Daily Direct closed $.71 higher with a base range of $107 to $122 and a weighted average of $117.99; the Iowa/Minnesota closed $1.74 higher with a weighted average of $120.44; the Western Corn Belt closed $1.88 higher with a weighted average of $120.52.  Prices at the Eastern Corn Belt were not reported due to confidentiality. Butcher hog prices at the Midwest cash markets are steady at $69. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $44 to $56. Barrows and gilts were steady with light demand for moderate offerings at $68 to $77. Boars ranged from $45 to $50 and $10 to $15.

Pork values closed sharply higher – up $4.62 at $109.09.  Bellies were sharply higher again.  Picnics, hams, loins, and butts were higher to sharply higher.  Ribs were sharply lower. Estimated hog slaughter is 476,000 head – up 1,000 on the week and down 6,000 on the year.