Market News

Cattle futures move higher at midweek

At the Chicago Mercantile Exchange, live and feeder cattle were up sharply on technical buying.  June live cattle closed $5.10 higher at $252.80 and August live cattle closed $5.40 higher at $246.47.  August feeder cattle close $4.37 higher at $360.92 and September feeder cattle closed $4.10 higher at $357.97. 

There was another light round of direct cattle business that took place on Wednesday.  Dressed deals in Nebraska were marked at $410, $7 higher than the prior week’s weighted averages.  So far this week, live deals in the South have been at $260, $3 higher than the previous week’s business.  Dressed deals have been at $400, which is $2 to $3 lower than the prior week’s weighted averages.  Look for more trade to develop over the balance of the week. 

At the Kingsville Livestock Auction in Missouri, steers and heifers were steady to $5 lower, with spots of $10 lower on some calves, most of which weighed less than 450 pounds.  The USDA says demand was decent for the moderate supply.  Receipts were down on the week and the year.  Feeder supply included 56 percent steers and 39 percent of the offering weighed more than 600 pounds.  Medium and Large 1 feeder steers 506 to 544 pounds brought $468 to $520 and feeder steers 604 to 643 pounds brought $442 to $462.50.  Medium and Large 1 feeder heifers 554 to 590 pounds brought $420 to $437 and feeder steers 728 to 738 pounds brought $374 to $378.

Boxed beef was sharply lower with light demand for moderate offerings.  Choice was $2.05 lower at $388.68 and Select was $2.69 lower at $388.58.  The Choice/Select spread is $.10. Estimated cattle slaughter was 108,000 head, even on the week and down more than 12,000 on the year. 

Lean hog futures were higher on oversold signals and the higher midday moves in pork.  June lean hogs closed $2.45 higher at $100.87 and July lean hogs closed $2.92 higher at $105.87. 

Cash hogs closed firm with a moderate negotiated run.  The cash hog market has been unsurprisingly inconsistent this week.  Processors appear to be more aggressive in their procurement efforts.  Supplies of market-ready hogs are ample making demand crucial.  There have been some bright spots when it comes to global demand for US pork, but there are lingering long-term concerns.  The official kick off to summer grilling season is just around the corner, which could provide an additional bump to domestic demand, especially as pork remains a competitively priced protein in the retail space.  Barrows and gilts at the National Daily Direct are $.32 higher with a base range of $91 to $96 and a weighted average of $95.51.  Prices at the regional direct markets were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $66. At Illinois, slaughter sows were steady with moderate demand for light to moderate offerings at $57 to $59.  Barrows and gilts were steady with moderate demand for moderate offerings at $47 to $57.  Boars ranged from $8 to $15 and $5 to $8. 

Pork values closed higher, up $.51 at $96.03.  Butts, loins, ribs, and hams were higher.  Bellies and picnics were lower.  Estimated hog slaughter was 484,000 head, up 7,000 on the week and up more than 1,000 on the year.