Market News

Cattle futures mixed waiting on direct business

At the Chicago Mercantile Exchange, live cattle were mixed and feeders were higher waiting on widespread direct business.  October live cattle closed $.22 lower at $217.22 and December live cattle were unchanged at $220.80.  October feeder cattle closed $1.75 higher at $333.65 and November feeder cattle closed $1.62 higher at $330.90. 

Direct cash cattle trade activity was quiet Tuesday.  The lone bid to have surfaced was in Nebraska at $350 dressed.  Asking prices have not been floated.  If packers are short-bought following last week, we could see business develop sooner rather than later. 

At the Oklahoma National Stockyards, feeder steers were mostly steady to $3 lower and feeder heifers were unevenly steady.  The USDA says demand was good for feeder cattle.  Steer calves were $5 to $15 lower and heifer calves were $2 to $8 lower.  The USDA says demand was good for feeder cattle.  Demand was moderate for calves.  Quality was average to attractive.  Most cattle were in average flesh conditions.  Receipts were up on the week and the year.  Feeder supply included 56 percent steers with 63 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 651 to 692 pounds brought $354 to $372 and feeder steers 760 to 794 pounds brought $342 to $365.  Medium and Large 1 feeder heifers 556 to 597 pounds brought $332 to $358 and feeder heifers 701 to 748 pounds brought $324 to $343. 

Boxed beef was higher and sharply higher with strong demand for solid offerings.  Choice was $2.18 higher at $382.66 and Select was $6.25 higher at $364.48.  The Choice/Select spread was $18.18. Estimated cattle slaughter was 108,000 head, up 8,000 on the week and down more than 12,000 on the year. 

Lean hog futures were higher on short covering and the higher pork values during the session.  October lean hogs closed $1.12 higher at $79.37 and December lean hogs closed $1.30 higher at $69.70. 

Cash hogs closed lower with a solid negotiated run.  Processors have been moving large numbers, but with leverage have been able to do so at mostly lower prices.  The industry continues to monitor the available supplies of market-ready hogs and hog weights.  Demand remains a big driver for the market and while there are some bright spots both globally and domestically, there are still lingering long-term concerns about demand strength. Barrows and gilts at the National Daily Direct closed $.48 lower with a base range of $69 to $84.50 and a weighted average of $78.74; the Iowa/Minnesota and the Western Corn Belt both had no comparison, but weighted averages of $78.01.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $60. At Illinois, slaughter sow prices were steady with moderate demand for light to moderate offerings at $43 to $55.  Barrows and gilts were steady with moderate demand for moderate offerings at $53 to $63.  Boars ranged from $25 to $35 and $15 to $20. 

Pork values closed weak, down $.03 at $87.77.  Picnics, loins, and hams were down.  While bellies, ribs, and butts were sharply higher and higher. Estimated hog slaughter was 493,000 head, up 11,000 on the week and up about 17,000 on the year.