Market News

Cattle futures sharply lower ahead of direct business

At the Chicago Mercantile Exchange, live and feeder cattle were sharply lower on technical weakness.  August live cattle closed $3.30 lower at $231.42 and October live cattle closed $2.97 lower at $227.65.  August feeder cattle closed $5.55 higher at $348.80 and September feeder cattle closed $5.97 lower at $344.85. 

Direct cash cattle trade was quiet again Tuesday.  Bids and asking prices didn’t surface.  Showlists this week are mixed, higher in Texas, Nebraska, and Colorado, but lower in Kansas.  Significant trade volume isn’t expected until sometime Thursday or Friday. 

At the Oklahoma National Stockyards, compared to the most recent full test, feeder steers were mostly steady.  Feeder heifers were steady to $4 higher.  Steer calves were steady to $3 lower and heifer calves were $2 to $5 higher.  The USDA says demand was good for all classes.  Receipts were down on the year.  Feeder supply included 68 percent steers with 73 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 655 to 697 pounds brought $395 to $430 and feeder steers 802 to 843 pounds brought $356 to $377.  Medium and Large 1 feeder heifers 609 to 648 pounds brought $355 to $393 and feeder heifers 750 to 793 pounds brought $329 to $356.50. 

Boxed beef was lower with light demand for moderate offerings.  Choice was $1.66 lower at $373.95 and Select was $.76 lower at $364.41.  The Choice/Select spread is $9.54. 

Estimated cattle slaughter was 111,000 head, up 1,000 on the week and down nearly 8,000 on the year. 

Lean hog futures closed mixed on spread adjustments. August lean hogs closed $.35 higher at $98.45 and October lean hogs closed $.10 higher at $84.37. 

Cash hogs closed mixed with a big negotiated run.  The market continues to keep a close eye on demand.  Globally, there have been some bright spots, but there are ongoing concerns about long-term strength.  Summer grilling season is in full swing, which could provide a boost to domestic demand, especially as pork is a competitively priced protein in the retail space.  The industry is also monitoring supplies of market-ready hogs and hog weights. Processors continue to have leverage, but appear to be more aggressive in their procurement efforts. Barrows and gilts at the National Daily Direct was $.22 lower with a base range of $93 to $100.50 with a weighted average of $98.56; the Iowa/Minnesota closed $3.52 higher with a weighted average of $99.88; the Western Corn Belt closed $3.50 higher with a weighted average of $99.86.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $62. At Illinois, slaughter sows were $2 lower with moderate demand for moderate offerings at $37 to $48.  Barrows and gilts were steady with moderate demand for moderate offerings at $57 to $67.  Boars ranged from $18 to $25 and $10 to $12. 

Pork values closed lower, down $.34 at $101.21.  Bellies, ribs, and butts were sharply lower.  Picnics, hams, and loins were all up. Estimated hog slaughter was 483,000 head, up 4,000 on the week and up about 20,000 on the year.