Market News

Cattle futures sharply higher on solid demand

At the Chicago Mercantile Exchange, live and feeder cattle were sharply higher on technical buying and solid beef demand. June live cattle closed $1.47 higher at $253.22 and August live cattle closed $2.17 higher at $248.35.  August feeder cattle closed $5.70 higher at $372.30 and September feeder cattle closed $5.75 higher at $370.37. 

There was a very light round of direct cash cattle trade on Tuesday.  There were a handful of dressed deals reported in Nebraska at $400.  Like Monday’s live deals in the South, which were at $255, steady deals were steady with last week’s business, but not enough to establish an accurate price trend for the week. Significant trade volume will likely be delayed until midweek or later. 

At the Oklahoma National Stockyards, feeder steers were steady to $4 higher.  Feeder heifers weren’t as active and were steady to $2 lower.  The USDA says demand was moderate to good.  Steer calves weighing less than 500 pounds were $5 to $10 higher and steer calves weighing more than 500 pounds were $5 to $10 lower.  Heifer calves weighing less than 500 pounds were $10 to $20 higher and heifers weighing more than 500 pounds were steady.  Quality was average to attractive and included several heavyweight feeders coming off fall and winter pasture.  Receipts were down on the week, but up on the year.  Feeder supply included 56 percent steers with 78 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 652 to 686 pounds brought $412 to $442 and feeder steers 751 to 795 pounds brought $375 to $399.  Medium and Large 1 feeder heifers 659 to 694 pounds brought $354 to $385.50 and feeder heifers 802 to 847 pounds brought $322.10 to $344. 

Boxed beef closed higher on solid demand for moderate offerings.  Choice was $.78 higher at $392.34 and Select was $1.64 higher at $392.24.  The Choice/Select spread is $.10. Estimated cattle slaughter was 104,000 head, down 5,000 on the week and down more than 17,000 on the year.

Lean hog futures closed higher on technical buying, the higher midday move in pork, and the rally in cattle. June lean hogs closed $1.67 higher at $101.42 and July lean hogs closed $1.70 higher at $103.52. 

Closing cash hog prices at the major direct were not reported due to packer submission problems.  The cash hog market has been inconsistent.  There are ample supplies of market-ready hogs, which makes demand crucial. Summer grilling season is just around the corner, which could provide a boost in the domestic market, especially with pork’s competitive price in the retail space.  And while there are some bright spots when it comes to global demand for US pork, there are still some long-term concerns that linger.

Butcher hog prices at the Midwest cash markets are steady at $64. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $45 to $57.  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 lower, down $1.39 at $95.97.  Bellies were sharply lower.  Hams, butts, picnics, and loins were all down.  Ribs were sharply higher. Estimated hog slaughter was 488,000 head, even on the week and up 1,000 on the year.