Market News

Cattle futures mixed waiting on direct business

At the Chicago Mercantile Exchange, live and feeder cattle were mixed ahead of the week’s direct business and Fridays reports from the USDA. August live cattle closed $.15 higher at $226.67 and October live cattle closed $.07 lower at $223.22.  August feeder cattle closed $2.45 lower at $349.55 and September feeder cattle closed $1.27 lower at $344.97. 

Direct cash cattle trade activity was quiet Tuesday.  Bids and asking prices remain elusive.  Significant trade volume will likely hold out until sometime Thursday or Friday. 

At the Kingsville Livestock Auction in Missouri, there was a light supply, and steers and heifers sold $5 to $10 lower.  The USDA says demand was moderate.  Receipts were down on the week and the year.  Feeder supply included 46 percent steers with 44 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 509 to 531 pounds brought $495 to $505 and feeder steers 787 to 796 pounds brought $355 to $362.  Medium and Large 1 feeder heifers 513 to 546 pounds brought $424 to $450 and feeder heifers 608 to 625 pounds brought $369 to $397. 

Boxed beef was sharply lower and lower with light demand for solid offerings.  Choice was down $3.19 at $366.91 and Select was $1.22 lower at $354.23.  The Choice/Select spread was $12.68. Estimated cattle slaughter was 103,000 head, down 8,000 on the week and down nearly 12,000 on the year. 

Lean hog futures were mixed on spread trade, with support from higher pork values.  August lean hogs closed $.22 higher at $101.50 and October lean hogs closed $.40 higher at $88.12. 

Cash hogs closed higher with a moderate negotiated run.  Processors continue to have leverage and control the pace of business. They appear to be more aggressive in their procurement efforts.  The market has been largely focused on demand.  Globally, there are some bright spots, but there lingering concerns about long-term strength.  Pork’s competitive price in the protein retail space could provide additional support to the domestic market. Barrows and gilts at the National Daily Direct were $1.33 higher with a base range of $94 to $101 and a weighted average of $100.22; the Iowa/Minnesota had a weighted average of $100.40; the Western Corn Belt had a weighted average of $100.35.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $66.  At Illinois, slaughter sows were steady with moderate demand for moderate offerings at $36 to $49.  Barrows and gilts were steady with moderate demand for moderate offerings at $60 to $70.  Boars ranged from $22 to $32 and $10 to $13. 

Pork values closed higher, up $1.72 at $104.82.  Bellies, ribs, and hams were all sharply higher.  Picnics, butts, and loins were lower. Estimated hog slaughter was 479,000 head, down 4,000 on the week and about even on the year.