Market News

Cattle futures mostly higher waiting on direct business

At the Chicago Mercantile Exchange, live cattle were mostly higher, and feeders were up, waiting on direct business to develop. June live cattle closed $.10 lower at $208 and August live cattle closed $.22 higher at $204.10.  May feeder cattle closed $.72 higher at $289.07 and August feeder cattle closed $.52 higher at $292.70. 

Direct cash cattle trade was quiet again Thursday.  Bids were elusive.  Asking prices were at $214 to $215 live in the South and $340-plus dressed in the North.  There has been some scattered deals reported, but it wasn’t near enough business to establish an accurate price trend for the week.  The bulk of the week’s trade looks like it is going to hold out until sometime Friday.

At the Bloomfield Livestock Auction in Iowa, compared to two weeks ago steers 600 to 750 pounds were $10 to $22 higher, while other weight groups were not well compared, but sold with a higher undertone.  Heifers 550 to 750 pounds were steady to sharply higher, while other weight groups, also not well compared, sold with a higher undertone.  The USDA says demand was good for the moderate to heavy supply.  Receipts were down on the week, but up on the year.  Feeder supply included 50 percent steers and 28 percent of the offering was more than 600 pounds.  Medium and Large 1 feeder steers 501 to 543 pounds brought $412.50 to $425 and feeder steers 607 to 643 pounds brought $342 to $372.50.  Medium and Large 1 feeder heifers 500 to 545 pounds brought $327.50 to $365 and feeder heifers 704 to 731 pounds brought $269 to $313. 

Boxed beef closed higher with solid demand for moderate offerings.  Choice was $1.73 higher at $333.70 and Select closed $1.83 higher at $316.35.  The Choice/Select spread is $17.35.   

Estimated cattle slaughter was 116,000 head – down 4,000 on the week and down more than 11,000 on the year.

Lean hog futures closed mostly lower, pressured by lower cash business and the marketing-year low for export sales.  May lean hogs closed $.07 higher at $81.95 and June lean hogs closed $.22 lower at $99.92. 

Cash hogs closed mixed with a moderate negotiated run.  Processors were able to move needed numbers without having to get too aggressive in their procurement efforts.  Thursday’s export sales report from the USDA had pork sales at a marketing-year low.  While China was noted on the report, it wasn’t for purchases, but rather for its reductions.  Overall, demand for U.S. pork on the global market has been relatively strong.  The industry is optimistic that domestic demand could see a boost with grilling season just around the corner – but that remains to be seen. Barrows and gilts at the National Daily Direct closed $.56 lower with a base range of $83 to $94 and a weighted average of $91.31; the Iowa/Minnesota closed $.06 higher with a weighted average of $92.02; the Western Corn Belt closed $.57 lower with a weighted average of $91.61.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are $3 lower at $63. 

Pork values closed higher – up $1.78 at $95.86. Loins and hams were sharply higher.  Ribs, butts, and picnics were all higher.  Bellies were lower. Estimated hog slaughter was 475,000 head – even on the week and down more than 11,000 on the year.