Market News

Cattle futures mostly higher waiting on direct business

At the Chicago Mercantile Exchange, live and feeder cattle were mostly higher on tight ready supplies, waiting on direct business to develop. August live cattle closed $2.97 higher at $239.70 and Select is $2.77 higher at $232.12.  August feeder cattle closed $3.45 higher at $354.15 and September feeder cattle closed $3.25 higher at $350.70. 

Direct cash cattle trade activity was pretty quiet Tuesday.  A few bids did surface in Nebraska at $403, but those were passed.  Current asking prices in Texas are at $258 to $260 live, but no bids were on the table.  The rest of cattle country was quiet.  Look for significant trade volume to hold out until later in the week. 

At the Callaway Livestock Center in Missouri, steer calves weighing 400 to 500 pounds were steady and steer calves 500 to 550 pounds and 600 to 650 pounds were mostly $5 to $10 lower.  Steers 700 to 750 pounds were $5 to $10 lower.  Heifer calves weighing 450 to 500 pounds were steady, heifers 500 to 600 pounds were mostly $5 to $12 lower, and 6-weights were steady.  The USDA says demand was good on a moderate to heavy offering.  Receipts were down on the week, but up on the year.  Feeder supply included 69 percent steers with 48 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 509 to 542 pounds brought $508 to $545 and feeder steers 654 to 685 pounds brought $416.50 to $450.  Medium and Large 1 feeder heifers 500 to 547 pounds brought $442 to $470 and feeder heifer 606 to 617 pounds brought $408 to $423. 

Boxed beef closed mixed with light and moderate demand for solid offerings.  Choice was $.70 higher at $392.90 and Select was $1.16 lower at $376.93.  The Choice/Select spread is $15.97.  Estimated cattle slaughter was 109,000 head, down 1,000 on the week and down more than 9,000 on the year. 

Lean hog futures closed lower on fund and technical selling, with ongoing concerns about demand. July lean hogs closed $1.22 lower at $96.15 and August lean hogs closed $1.45 lower at $94.70. 

Cash hogs closed higher with a solid negotiated run.  Processors have been much more aggressive in their procurement efforts to start the week.  Demand for US pork on the global market has had some bright spots, but there are still lingering long-term concerns about demand strength.  Pork remains a competitively priced protein in the retail space, which could provide a boost to domestic demand. Barrows and gilts at the National Daily Direct closed $1.37 higher with a base range of $85 to $98 and a weighted average of $97.48; the Iowa/Minnesota closed $1.34 higher with a weighted average of $97.52; the Western Corn Belt closed $1.37 higher with a weighted average of $97.48.  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 sows were steady with moderate demand for light offerings at $47 to $59.  Barrows and gilts were steady with moderate demand for moderate offerings at $49 to $59.  Boars ranged from $25 to $30 and $15 to $30. 

Pork values closed sharply lower, down $2.50 at $95.96.  Butts dropped more than $8 on Tuesday.  Loins, hams, bellies, and ribs were also down.  Picnics were higher.  Estimated hog slaughter was 485,000 head, down 2,000 on the week and up about 4,000 on the year.