Market News

Cattle futures sharply lower to start the week

At the Chicago Mercantile Exchange, live and feeder cattle were sharply lower, pressured by the drop in the Dow and last week’s direct business.  April live cattle closed $4.42 lower at $230.15 and June live cattle closed $4.05 lower at $227.42.  April feeder cattle closed $5.07 lower at $346.55 and May feeder cattle closed $5.20 lower at $342.87. 

Direct cash cattle trade activity was quiet to start the week.  Typical for a Monday. Showlists are mixed, higher in Texas, but lower in Kansas and Nebraska/Colorado.  Bids and asking prices didn’t surface.  Look for significant trade volume to hold out until sometime Thursday or Friday. 

At the Oklahoma National Stockyards, feeder steers and heifers were $10 to $20 lower.  Steer and heifer calves were lightly tested.  The USDA says better quality cattle were steady, while plainer cattle were up to $20 lower.  Demand was light to moderate, and quality wasn’t as attractive as last week, running plain to average.  Receipts were down on the week and the year.  Feeder supply included 38 percent steers with 70 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 550 to 586 pounds brought $440 to $497 and feeder steers 659 to 692 pounds brought $403 to $435.  Medium and Large 1 feeder heifers 610 to 641 pounds brought $358 to $403 and feeder heifers 711 to 748 pounds brought $315 to $345. 

Boxed beef was sharply higher with strong demand for light offerings.  Choice was $4.07 higher at $391.29 and Select was $4.67 higher at $383.62.  The Choice/Select spread was $7.67.   Estimated cattle slaughter was 103,000 head, up 1,000 on the week and down nearly 12,000 on the year. 

Lean hog futures closed lower, pressured by the decline in cattle futures.  April lean hogs closed $.80 lower at $94.82 and May lean hogs closed $.47 lower at $100.37. 

Cash hogs closed firm with a solid negotiated run.  For a second week in a row, the cash hog market is off to a stronger start.  Processors do have leverage and can do business at their desired pace.  Supplies of market-ready hogs are ample and are coming in at heavier weights.   While global demand for US pork has been relatively strong, there are still long-term concerns about its strength.  Pork remains a competitively priced protein in the retail space, which could provide a boost for the domestic market. Barrows and gilts at the National Daily Direct were $.26 higher with a base range of $90 to $93 and a weighted average of $91.95; the Iowa/Minnesota closed $.12 higher with a weighted average of $91.95; the Western Corn Belt closed $.12 higher with a weighted average of $91.95.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets were $1 higher at $67.   At Illinois, slaughter sow prices were steady with moderate demand for light offerings at $60 to $72.  Barrows and gilts were steady with moderate demand for moderate offerings at $45 to $55.  Boars ranged from $8 to $15 and $5 to $8.

Pork values closed sharply higher, up $3.05 at $101.32.  Loins and ribs were sharply higher.  Butts, hams, picnics, and bellies were also up. Estimated hog slaughter was 493,000 head, up 18,000 on the week and up about 6,000 on the year.