Market News

Cattle futures mostly lower heading into Friday

At the Chicago Mercantile Exchange, live and feeder cattle closed mostly lower, watching direct business develop.  August live cattle closed $1.07 lower at $216.95 and October live cattle closed $.67 lower at $214.35.  August feeder cattle closed $.17 higher at $311.25 and September feeder cattle closed $.25 lower at $310.55. 

It was a solid day of business for direct cash cattle trade.  Live deals in the South this week had a wide range, from $228 to $240, but have been at mostly $235, $4 to $5 higher than the previous week’s weighted averages.  Dressed business in the North was at $380, fully steady with the prior week’s weighted average basis in Nebraska.    

At the South Central Regional Stockyards in Missouri, feeder steers were $3 to $12 higher.  Feeder heifers 475 to 550 pounds were $5 to $15 higher, other weights were steady.  The USDA says demand was good to very good, and supply was moderate.  There were some consignments that were outstanding, but overall, it was not as strong as last week.  Receipts were down on the week, but up on the year.  Feeder supply included 58 percent steers and 31 percent of the offering weighed more than 600 pounds.  Medium and Large 1 feeder steers 560 to 586 pounds brought $280.50 to $414 and feeder steers 601 to 645 pounds brought $358 to $391.50.  Medium and Large 1 feeder heifers 502 to 530 pounds brought $361 to $390 and feeder heifers 605 to 635 pounds brought $310 to $338.25. 

Boxed beef closed sharply higher with strong demand for light offerings.  Choice was $1.96 higher at $376.72 and Select closed $2.32 higher at $363.07.  The Choice/Select spread is $13.65. Estimated cattle slaughter was 115,000 head – down 5,000 on the week and down nearly 7,000 on the year.

Lean hog futures closed mostly higher on spread trade, supported by stronger pork values during session. July lean hogs closed $.05 higher at $108.90 and August lean hogs closed $.02 lower at $110.17. 

Cash hogs closed lower with a moderate negotiated run. The cash hog market continues to struggle with inconsistency.  Demand for U.S. pork on the global market has been strong, even with the hot and cold business from China.  Export sales were down significantly from last week and the prior 4-week average.  Domestic demand has seen a boost with the return of the summer grilling season. The industry continues to monitor hog weights and available supplies of market-ready hogs. Barrows and gilts at the National Daily Direct were $1.38 lower with a base range of $99 to $110 and a weighted average of $105.95; the Iowa/Minnesota closed $1.25 lower with a weighted average of $106; the Western Corn Belt closed $1.29 lower with a weighted average of $106.45; the Eastern Corn Belt had no comparison but a weighted average of $104.32. 

Butcher hog prices at the Midwest cash markets are steady at $72.  At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $49 to $61.  Barrows and gilts were steady with moderate demand for moderate offerings at $60 to $70. Boars ranged from $25 to $35 and $18 to $25.

Pork values closed higher, up $1.42 at $114.50.  Bellies, hams, butts, ribs, and loins were all higher.  Picnics were lower.  Estimated hog slaughter was 480,000 head – even on the week and up about 8,500 on the year.