Market News

Cattle futures mostly higher, awaiting direct business

Chicago Mercantile Exchange live cattle were up and feeders were mostly modestly higher, oversold and waiting for direct business to get underway. The import tariffs on Canada and Mexico could lead to a tighter domestic supply of cattle. April live was $2.40 higher at $194.65 and June up $1.97 at $190.07. April feeders were up $.45 at $272.50 and May was $.80 higher at $271.00.

Direct cattle markets were mostly quiet. Very light activity was reported in Kanas at $195 live, not enough to establish a trend. A few asking prices were reported at $198+ live in the south, with no dressed asking prices or any bids yet. Widespread trade will wait until at least Wednesday. This week’s show list looks mixed when compared to last week, larger in Kansas, but smaller in Colorado, Nebraska, and Texas. The big question is whether or not the market has found some footing after a couple of weeks of declines or if there will be at least one more round of losses. Last week’s trade was mainly at $197 on the live basis in the south and $313 dressed in the north, both down $2 from the prior week’s weighted averages.

At the close of the Oklahoma National Stockyards feeder cattle sale, compared to the previous week, feeder steers and heifers were mostly $4 lower. Stocker steers and steer calves were up $8 to $12 while stocker heifers and heifer calves were mostly steady. The USDA says demand was moderate to good for feeders, even if buyers were a little pickier, and demand was very good for stockers and calves, especially steers. Receipts were up on the week and the year. 53% of the offering were steers and 73% of all feeders weighed more than 600 pounds. Medium and Large 1 feeder steers weighing 700 to 800 pounds were reported at $264 to $293 and 800-to-900-pound steers brought $250 to $270. Medium and Large 1 feeder heifers weighing 600 to 700 pounds ranged from $261.25 to $311 and 700-to-800-pound heifers sold at $240 to $266.

Boxed beef closed higher with moderate movement. Choice was up $.92 at $314.85 and Select beef was $1.61 higher at $304.02. The estimated cattle slaughter of 123,000 head was up 1,000 on the week, but down 161 on the year.

Lean hog futures were pressured by domestic and export demand uncertainties. U.S. pork is a part of the retaliatory tariff list from China, a major global buyer. April was down $1.35 at $82.35 and May was $2.20 lower at $85.47.

Cash hogs were mixed, with moderate closing negotiated numbers at the major direct markets. At least nationally, it looks like some buyers needed near-term supplies after the slow start to the week and were willing to bid up. The major regionals were more tentative, with the day’s weighted averages, where reported, close to the respective five-day rolling averages. Tariffs against key U.S. trading partners are now in effect and there have been some wide swings in the domestic wholesale market recently, led by a very volatile past few days for the pork belly primal.

National direct barrows and gilts were $.80 higher with a base price range of $84 to $92.50 for a weighted average of $89.21. Iowa/Southern Minnesota had no recent comparison with an average of $89.48 and there was no recent comparison for the Western Corn Belt with an average of $89.44. The Eastern Corn Belt was not reported due to confidentiality. Butcher hogs in Dorchester, Wisconsin and Garnavillo, Iowa were steady at $62. Illinois direct sows were $1 lower at $62 to $74 with moderate demand and offerings. Barrows and gilts were steady at $51 to $61 on moderate demand for moderate offerings. Boars ranged from $15 to $30.

Pork closed $2.02 lower at $97.77. Picnics were firm, while loins, butts, ribs, hams, and bellies were sharply lower. The estimated hog slaughter of 487,000 head was down 2,000 on the week, but up 35,645 on the year.