Market News

Cattle futures sharply lower Thursday

Chicago Mercantile Exchange live and feeder cattle futures were sharply lower, watching the direct markets and getting ready for Friday’s USDA Cattle on Feed report. There was also pressure from signs of slowing consumer beef demand. August live was down $2.02 at $182.25 and October was $2.55 lower at $183.02. August feeders were $2.32 lower at $256.22 and September was down $2.55 at $257.00.

Cash cattle country had some bids on the table Thursday afternoon in parts of Nebraska at $310 dressed and $196 on a live basis. No sizeable sales were reported in the North. Packer interest was expected to improve as the week winds down, but at this point Northern feedlots are holding out for better money.

At the Hub City Livestock Auction on Wednesday, there was a much lighter offering than the previous week with too few comparable weight classes to develop and accurate price trend. Some lower undertones were noted on steers over 900 pounds. USDA says demand was good to very good for a handful of packages and loads of both home raised and backgrounded cattle. Feeder supply included 65% steers and 98% of the offering was over 600 pounds. Medium and Large 1 feeder steers 906 pounds brought $248.50. Medium and Large 1 feeder heifers 900 pounds sold for $239.

Boxed beef was mixed at the close with Choice down $2.01 at $316.15 and Select up $1.02 at $299.46. The Choice/Select spread was $16.69.

Estimated cattle slaughter was 115,000 head – down 7,000 on the week and down more than 9,000 on the year.

Lean hog futures were mixed on spread trade, the steady to lower cash during the session, and the higher midday move in pork. August was down $.27 at $91.37 and October was up $.35 at $74.02.

Cash hogs were steady to higher with moderate closing negotiated numbers at the major direct markets. It looks like buyers needed to secure more ready numbers heading into the week, somewhat encouraged by the higher midday move in pork. Pork export sales of 23,700 tons were down 11% on the week and 35% from the four-week average, mainly to Mexico, China, and Japan.

Barrows and gilts at the National Daily Direct were up $.31 with a base range of $74 to $88. The Iowa/Minnesota was up $1.14 for a weighted average of $87.09. The Western Corn Belt was up $.40 for a weighted average of $85.76. The Eastern Corn Belt was not reported due to confidentiality.

Butcher hogs at the Midwest cash markets are steady at $66; sows are steady at $54 to $66; boars are priced at $22. At Illinois, slaughter sows were steady at $48 to $60; barrows and gilts were steady at $52 to $62; boars ranged from $8 to $28.

Pork values closed higher – up $.93 at $100.25.

Estimated hog slaughter was 475,000 head – even on the week and down 1,000 on the year.