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.  The market continues to watch news about New World screwworm.  August live cattle closed $1.80 higher at $241.50 and October live cattle closed $1.57 higher at $233.70.  August feeder cattle closed $.22 higher at $354.37 and September feeder cattle closed $.67 higher at $351.37. 

Direct cash cattle trade activity was quiet on Wednesday.  For the most part bids and asking prices have been slow to surface.  There were a handful of deals reported in Nebraska at $402, dressed, but it certainly isn’t enough business to establish an accurate price trend.  Some bids were floated in Nebraska earlier in the week at $403 dressed, but those were passed.  Some asking prices were noted in Texas at $258 to $260 live, but there were no bids.  Significant trade volume will likely hold out until the back half of the week.

At the Interstate Regional Stockyards in Missouri, feeder steers weighing less than 450 pounds were steady to $5 higher and steers weighing more than 450 pounds were steady to $5 lower.  Feeder heifers were steady.  The USDA says demand was moderate to good and supply was moderate.  Receipts were up on the week and the year. Feeder supply included 64 percent steers with 41 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 509 to 542 pounds brought $455 to $472 and feeder steers 617 to 645 pounds brought $405 to $448.  Medium and Large 1 feeder heifers 492 to 498 pounds brought $432.50 to $445 and feeder heifers 604 to 633 pounds brought $355 to $387. 

Boxed beef closed mixed with solid and light demand for moderate offerings.  Choice was $.38 higher at $393.28 and Select was $1.23 lower at $375.70.  The Choice/Select spread was $17.58. Estimated cattle slaughter was 105,000 head, down 1,000 on the week and down more than 5,000 on the year. 

Lean hog futures finished the day mixed, mostly higher on spread trade.  Hogs remain in oversold territory. July lean hogs closed $.70 higher at $96.85 and August lean hogs closed $.72 higher at $95.42. 

Cash hogs closed firm with a moderate negotiated run.  Processors have been more aggressive in their procurement efforts, and it’s been a solid start to the week.  With plenty of pork available, demand remains crucial.  Globally, there have been some bright spots, but there are still lingering concerns about long-term strength.  Pork remains a competitively priced protein here in the US in the retail space, which could help boost domestic demand.  The industry continues to monitor the availability of market-ready hogs and hog weights, which were down a pound on the week, but are still running more than 2 pounds above year-ago levels.  Barrows and gilts at the National Daily Direct closed $.04 higher with a base range of $90 to $98 and a weighted average of $97.52; the Iowa/Minnesota closed $.18 higher with a weighted average of $97.70; the Western Corn Belt closed $.12 higher with a weighted average of $97.60.  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 heavy 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 $20. 

Pork values finished the day unchanged at $95.96.  Loins and bellies were up.  Picnics, hams, butts, and ribs were all lower.  Estimated hog slaughter was 477,000, down 1,000 on the week and on the year.