Market News

Cattle futures pressured by higher corn

At the Chicago Mercantile Exchange, live and feeder cattle were lower pressured by higher corn and watching the rest of the week’s cash business develop.  June live cattle closed $1.60 lower at $133.32 and August live cattle closed $1.55 lower at $134.65.  May feeder cattle closed $3.47 lower at $159 and August feeder cattle closed $2.72 lower at $171.37. 

There was a light direct cash cattle trade on Tuesday following the light trade on Monday.  Deals in Nebraska were at $138 to $140 live and $222 dressed, both about steady with this week and the prior week’s business.  Look for more business to develop over the balance of the week. There was light live trade reported in atypical fashion on Monday at $138 live in the South, fully steady with last week’s weighted averages.  There was also some scattered dressed trade reported in the North at $222, generally steady with last week’s weighted average basis in Nebraska. 

At the Joplin Regional Stockyards in Missouri, compared to last week feeder steers under 800 pounds were steady, with heavier weights were steady to $3 lower.  Feeder heifers were steady.  The USDA says quality was not as solid as last week.  Supply and demand were moderate, with active internet buying.  Receipts were up on the week and the year.  Feeder supply included 55% steers and 58% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 706 to 740 pounds brought $162 to $168 and feeder steers 803 to 840 pounds brought $151 to $156.  Medium and Large 1 feeder heifers 402 to 445 pounds brought $170 to $185 and feeder heifers 705 to 746 pounds brought $144 to $151. 

Boxed beef closed higher on strong demand for moderate offerings.  Choice is $3.49 higher at $271.53 and Select closed $1.20 higher at $262.90.  The Choice/Select spread is $8.63. Estimated cattle slaughter is 125,000 head – even on the week and up 5,000 on the year. 

Lean hog futures ended the day lower, pressured by lower pork values and long-term demand concerns.  May lean hogs closed $1.55 lower at $107.75 and June lean hogs closed $1.80 lower at $114.35. 

Cash hogs closed mixed with a huge negotiated run.  Processors were aggressive in their procurement efforts and moved big numbers.  Demand for US pork on the global market and domestically has been strong, helping provide some price support.  While that is expected to continue, there are long-term concerns that have added uncertainty in the market. Barrows and gilts at the National Daily Direct closed $1.93 higher with a base range of $96 to $104 and a weighted average of $101.42; the Iowa/Minnesota closed $1.53 lower with a weighted average of $102.39; the Western Corn Belt closed $.23 higher with a weighted average of $102.48; the Eastern Corn Belt had a weighted average of $99.25. 

Butcher hog prices at the Midwest cash markets at $80. At Illinois, slaughter sow prices were steady with moderate demand for moderate to heavy offerings at $82 to $94.  Barrows and gilts were steady with moderate demand for moderate offerings at $66 to $73.  Boars ranged from $42 to $47 and $20 to $25. 

Pork values closed lower – down $2.75 at $103.60.  Hams and bellies were both sharply lower.   Butts are lower.  Ribs, loins, and picnics are higher. Estimated hog slaughter is 480,000 head – up 1,000 on the week and the year.