Market News

Cattle futures remain under pressure

At the Chicago Mercantile Exchange, live and feeder cattle finished the day lower on technical selling.  August live cattle closed $1.80 lower at $347.85 and October live cattle closed $1.87 lower at $229.  August feeder cattle closed $5.80 lower at $342.62 and September feeder cattle closed $5.80 lower at $339.32. 

There was a fairly light round of direct cash cattle trade that took place on Wednesday.  Dressed business in Nebraska was at $405.  This follows a light round of trade that took place on Tuesday in the South at $255 live.  Bids did surface at $255 to $256 live in the south, but were passed.  Look for additional trade to take place sometime Thursday or Friday. 

At the Ozarks Regional Stockyards in Missouri, feeder steers and heifers were not well tested, however undertones were steady to weak.  Steer and heifer calves over 600 pounds were $3 to $6 higher, while lighter weight calves were $4 to $8 lower.  The USDA says demand was moderate on a moderate supply. The quality of the offering was average and buyers were selective.  Receipts were up on the week and down on the year.  Feeder supply included 54 percent steers with 36 percent of the offering weighed more than 600 pounds.  Medium and Large 1 feeder steers 607 to 628 pounds brought $419 to $455 and feeder steers 653 to 690 pounds brought $397.50 to $420.  Medium and Large 1 feeder heifers 601 to 648 pounds brought $365 to $396 and feeder heifers 656 to 686 pounds brought $350 to $370. 

Boxed beef closed mixed with solid and light demand for light offerings.  Choice was $1.79 higher at $395.86 and Select was $.38 lower at $384.43.  The Choice/Select spread is $11.43.  Estimated cattle slaughter was 109,000 head, up 2,000 on the week and down more than 14,000 on the year. 

Lean hog futures closed higher on technical buying.  July lean hogs closed $.35 higher at $102 and August lean hogs closed $.60 higher at $99.57. 

Cash hogs closed lower with a fairly light negotiated run.  The cash hog market continues to struggle with consistency. With ample supplies of market-ready hogs available, demand is crucial.  Looking at the global market there have been some bright spots when it comes to demand, but there are lingering concerns around long-term strength. There is an opportunity for domestic demand to see a boost with the return of summer grilling season and pork’s competitive price in the retail space.  Hog weights are down more than half a pound on the week, but are still two pounds heavier than year-ago levels.  Barrows and gilts at the National Daily Direct were $1.21 lower with a base range of $87 to $96 and a weighted average of $94.36; the Iowa/Minnesota had a weighted average of $94.96; the Western Corn Belt had a weighted average of $94.57.

Butcher hog prices at the Midwest cash markets are steady at $62. At Illinois, slaughter sows were steady with moderate demand for light to moderate offerings at $47 to $59.  Barrows and gilts were steady with moderate demand for moderate offerings at $49 to $59.  Boar ranged from $8 to $15 and $5 to $8. 

Pork values closed lower, down $2.08 at $98.51.  Ribs, butts, and bellies were all sharply lower.  Picnics, hams, and loins were down. Estimated hog slaughter was 485,000 head, up 17,000 on the week and up about 5,000 on the year.