Market News

Cattle futures mostly higher waiting on direct business

At the Chicago Mercantile Exchange, live cattle were mostly higher, and feeders were higher, waiting on direct business to develop. August live cattle closed $.22 higher at $209.20 and October contracts were unchanged at $206.35.  August feeder cattle closed $1.00 higher at $303.30 and September feeder cattle closed $.77 higher at $303.37. 

Direct cash cattle trade activity was relatively quiet again on Thursday.  Bids surfaced at $222 live in the South and $365 dressed in the North.  Asking prices were noted at $228 to $230 live in the South and $376-plus dressed in the North.  The bulk of the week’s business is likely going to hold out until sometime Friday.

At the Hub City Livestock Auction in South Dakota, the best test was on steers 1,000 to 1,049 pounds, those were steady.  Heifers were not well compared.  The USDA says demand was good to very good for the light offering.  Quality was mostly attractive, and flesh was moderate to moderate plus.  Receipts were down on the week.  Feeder supply included 64 percent steers and 98 percent of the offering weighed more than 600 pounds.  Medium and Large 1 feeder steers 914 to 918 pounds brought $285 to $300 and feeder steers 956 to 987 pounds brought $289.50 to $296.75.  Medium and Large 1 feeder heifers 801 to 811 pounds brought $305 to $309 and feeder heifers 869 to 876 pounds brought $274.50 to $298.

Boxed beef closed firm and sharply higher with moderate and heavy demand for light offerings.  Choice was $.11 higher at $395.05 and Select was $3.45 higher at $379.74.  The Choice/Select spread is $15.31. Estimated cattle slaughter was 105,000 head, down 12,000 on the week and down more than 17,000 on the year.

Lean hog futures closed lower ahead of the USDA’s Quarterly Hogs and Pigs report and the lower pork values during the session. July lean hogs closed $.50 lower at $112.32 and August lean hogs closed $.97 lower at $110.25. 

Cash hogs closed sharply lower with a fairly light negotiated run.  Weather is likely a factor as processors weren’t very aggressive in their procurement efforts Thursday and didn’t move large numbers.  Overall, global demand for U.S. pork has been strong, which is helping provide some price support.  This week’s Export Sales report from the USDA showed a sharp increase in pork sales as China returned to the buyers list.  Domestic demand has seen a bump recently as pork remains a competitively priced protein. Barrows and gilts at the National Daily Direct closed $2.51 lower with a base range of $102 to $110 and a weighted average of $108; the Iowa/Minnesota had a weighted average of $108.59; the Western Corn Belt had a weighted average of $108.51.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are $3 higher at $82. 

Pork values closed lower, down $2.16 at $119.65.  All of the primals, except the loins were lower and sharply lower. Estimated hog slaughter was 473,000 head, up 2,000 on the week and down more than 2,000 on the year.