Market News

Cattle futures mostly lower waiting on direct business

At the Chicago Mercantile Exchange, live and feeder cattle were mostly lower ahead of direct business. April live cattle closed $.47 higher at $206.37 and June live cattle closed $.17 higher at $202.32.  April feeder cattle closed $.40 lower at $284.85 and May feeder cattle closed $.72 lower at $284.12. 

Direct cash cattle trade activity was quiet again on Tuesday.  Bids didn’t surface.  Asking prices were around $212 live in the South, but weren’t established in the North.  If business follows the trend of recent weeks, significant trade volume will likely hold out until sometime Friday.

At the Tri-State Livestock Auction in Nebraska, a few lightweight steers and heifers sold steady to $5 higher.  A higher undertone was noted on yearling weight steers and heifers.  The USDA says demand was good for all classes of cattle offered.  Receipts were down on the week.  Feeder supply included 60 percent steers and 75 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 943 pounds brought $278.10 and feeder steers 950 to 956 pounds brought $278.10.  Medium and Large 1 feeder heifers 590 pounds brought $329 and feeder heifers 695 pounds brought $286.50. 

Boxed beef closed sharply higher and higher with very good and good demand for solid offerings.  Choice was $8.09 higher at $335.19 and Select closed $.47 higher at $314.05.  The Choice/Select spread has widened to $21.14.  Estimated cattle slaughter was 124,000 head – up 1,000 on the week and up about 1,500 on the year.

Lean hog futures closed higher, supported by strong pork values during the session with some optimism about pork demand. April lean hogs closed $.95 higher at $86.65 and May lean hogs closed $.50 higher at $89.05.

Cash hogs closed lower with a solid negotiated run.  Processors were able to move needed numbers Tuesday without having to get too aggressive in their procurement efforts. Demand for U.S. pork on the global market has been strong, but is some concern it would wain as the industry navigates potential trade headwinds and disruptions.  There’s some optimism that domestic demand will see a boost as pork remains a more competitively priced protein. Barrows and gilts at the National Daily Direct closed $1.64 lower with a base range of $86 to $91 and a weighted average of $88.65; the Iowa/Minnesota closed $1.70 lower with a weighted average of $88.76; the Western Corn Belt closed $1.55 lower with a weighted average of $87.75.  No comparison at the Eastern Corn Belt but a weighted average of $88.17.

Butcher hog prices at the Midwest cash markets are steady at $60. 

Pork values closed firm – up $.18 at $97.55.  Bellies were sharply higher.  Picnics were higher.  Butts, loins, ribs, and hams were all lower. Estimated hog slaughter was 490,000 head – up 2,000 on the week and up about 9,500 on the year.