Market News

Cattle futures mostly higher to start the week

At the Chicago Mercantile Exchange, live cattle were mostly higher, and feeder cattle were up ahead of the week’s direct business.  April live cattle closed $.87 higher at $233.10 and June live cattle closed $.50 higher at $229.65.  April feeder cattle closed $2.12 higher at $353.32 and May feeder cattle closed $2.27 higher at $349.47.   

Direct cash cattle trade activity was quiet on Monday.  Showlists for the week are lower across all major feeding areas. Bids and asking prices have yet to be established.  If business follows the trend of recent weeks, look for significant trade volume to hold out until sometime Thursday or Friday. 

At midsession, at the Oklahoma National Stockyards, feeder steers were $2 to $8 lower and feeder heifers were $4 to $10 lower.  Steer calves were $5 to $15 lower and heifer calves were $10 to $20 lower.  The USDA says demand was moderate to good, but buyers are still proceeding with caution.  Quality was average to attractive.  Receipts were down on the week and down sharply on the year.  Feeder supply included 58 percent steers with 75 percent of the offering weighed more than 600 pounds.  Medium and Large 1 feeder steers 606 to 647 pounds brought $420 to $477 and feeder steers 750 to 786 pounds brought $349 to $373.50.  Medium and Large 1 feeder heifers 600 to 639 pounds brought $384 to $420 and feeder heifers 706 to 740 pounds brought $332 to $360. 

Boxed beef was higher and sharply higher on solid demand for moderate offerings.  Choice was up $1.50 at $381.34 and Select closed $3.90 higher at $378.21.  The Choice/Select spread was $3.13. Estimated cattle slaughter was 102,000 head, down 4,000 on the week and down about 3,000 on the year.

Lean hog futures closed mixed on spread adjustments as long-term demand concerns linger.  April lean hogs closed $.15 lower at $95.57 and May lean hogs closed $.10 lower at $100.02. 

Cash hogs closed higher with a moderate negotiated run.  The cash hog market continues to struggle with consistency. Processors were more aggressive in their procurement efforts and bid up to move needed numbers.  Demand has been relatively strong for U.S. pork on global markets, but there are long-term concerns about its ability to hold.  Pork remains a competitively priced protein in the retail space and that could provide some additional support to the domestic market.  The industry is also monitoring the availability of market-ready hogs and hog weights. Barrows and gilts at the National Daily Direct closed $1.49 higher with a base range of $89.50 to $93 and a weighted average of $91.87; the Iowa/Minnesota and the Western Corn Belt had no comparisons but weighted average of $91.92.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets were $2 higher at $70. At Illinois, slaughter sow prices were steady with moderate demand for light offerings at $58 to $70.  Barrows and gilts were steady with moderate demand for moderate offerings at $45 to $55.  Boars ranged from $8 to $15 and $5 to $8. 

Pork values were higher, up $.73 at $98.50.  Ribs were sharply higher.  Bellies, butts, loins, and picnics were also up.  Hams closed lower. Estimated hog slaughter was 482,000 head, up 5,000 on the week and down more than 1,000 on the year.