Market News

Cattle futures mostly higher ahead of direct business

At the Chicago Mercantile Exchange, live and feeder cattle were mixed, mostly higher ahead of direct cash business and this week’s Cattle on Feed report.  June live cattle closed $.20 higher at $213.17 and August live cattle closed $.07 lower at $207.85.  August feeder cattle closed $.02 higher at $297.50 and September feeder cattle closed $.12 lower at $296.20. 

Direct cash cattle trade was quiet again Tuesday. There were a handful of reported deals in Kansas on Monday, but not near enough business to establish an accurate price trend for the week. It’s likely significant trade volume will hold out until the latter half of the week.

At the Callaway Livestock Center in Missouri, steer calves 400 to 500 pounds were steady to firm, steers 500 to 600 pounds were steady to $10 lower, steers 600 to 650 pounds were steady to firm, yearlings weighing more than 850 pounds were steady to $3 lower.  Heifer calves weighing 400 to 450 pounds were mostly steady.  Heifers 450 to 500 pounds were $5 to $12 higher, heifers 500 to 600 pounds were fully steady to firm, and heifers 600 to 650 pounds were steady to $3 higher.  The USDA says demand was good on a moderate offering. While prices did drop some this week, the market remains very active.  Receipts were down on the week, but up on the year.  Feeder supply included 63 percent steers and 32 percent of the offering was more than 600 pounds.  Medium and Large 1 feeder steers 550 to 596 pounds brought $375 to $404 and feeder steers 611 to 640 pounds brought $354 to $384.  Medium and Large 1 feeder heifers 500 to 537 pounds brought $347 to $369.50 and feeder heifers 604 to 644 pounds brought $311 to $340.75. 

Boxed beef closed sharply higher and higher with very good demand for light offerings.  Choice was $3.94 higher at $358.75 and Select closed $.85 higher at $344.96.  The Choice/Select spread is $13.79. 

Estimated cattle slaughter was 120,000 head – down 1,000 on the week and down about 3,000 on the year.

Lean hog futures closed mixed on spread trade with ongoing inconsistencies in cash business. June lean hogs closed $.77 higher at $100.02 and July lean hogs closed $.02 lower at $103.55. Cash hogs closed higher with a solid negotiated run.  Processors were a little more aggressive in their procurement efforts and bid up to move numbers.  The industry continues to monitor demand both on the global market and domestically.  While the U.S. and China agreed to pause the trade escalation, it could take some time before China begins to ramp up its purchases.  The industry remains optimistic that domestic demand could see a boost with the summer grilling season just around the corner. Barrows and gilts at the National Daily Direct were $.89 higher with a base range of $88 to $99 and a weighted average of $93.40; no comparison at the Iowa/Minnesota but a weighted average of $93.92; the Western Corn Belt had a weighted average of $93.91.  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 sow prices were steady with moderate demand for moderate offerings at $47 to $59.  Barrows and gilts were steady with moderate demand for moderate offerings at $54 to $64.  Boars ranged from $25 to $35 and $18 to $25. 

Pork values closed lower – down $.57 at $100.52.  Loins, picnics, butts, and bellies were lower.  Hams and ribs were higher. Estimated hog slaughter was 484,000 head – up 3,000 on the week and up about 11,000 on the year.