Market News

Cattle futures slide ahead of widespread direct business

At the Chicago Mercantile Exchange, live and feeder cattle ended the day lower on profit taking, waiting for the week’s direct business to unfold. October live cattle closed $1.37 lower at $180.75 and December live cattle closed $.97 lower at $180.62.  September feeder cattle closed $.67 lower at $243.67 and October feeder cattle closed $1.20 lower at $240.90. 

Direct cash cattle trade activity was slow again Thursday.  A few bids finally surfaced at $188 to $190 live and $298 to $302 dressed, both in Nebraska.  Asking prices were around $187 to $188 live in the South, while the North has been quiet.  It’s looking like the bulk of the week’s business is going to hold out until sometime Friday.

At the OKC West Livestock Auction in Oklahoma, feeder steers were $2 to $4 higher.  Feeder heifers under 750 pounds were $1 to $5 lower and heifers more than 750 pounds were $1 to $3 higher on limited offerings.  The USDA says demand was moderate.  Steer and heifer calves that were long-weaned were $5 to $8 higher, rebounding after the sharp drop-off in the market last week.  Receipts were down on the week and the year.  Feeder supply included 54% steers and 78% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 761 to 774 pounds brought $246.50 to $260 and feeder steers 804 to 822 pounds brought $245.50 to $251.  Medium and Large 1 feeder heifers 605 to 642 pounds brought $242 to $265 and feeder heifers 705 to 745 pounds brought $236 to $240. 

Boxed beef closed higher on good demand for moderate offerings.  Choice was $2.06 higher at $316.95 and Select closed $1.53 higher at $303.03.  The Choice/Select spread is $14.91.  Estimated cattle slaughter was 120,000 head – down 1,000 on the week and down 4,000 on the year.

Lean hog futures ended the day higher, supported by higher cash and sharply higher wholesale business during the session. October lean hogs closed $.57 higher at $76.50 and December lean hogs closed $.97 higher at $68.22.

Cash hogs closed higher with a moderate negotiated run. Processors were more aggressive again in their procurement efforts, bidding up to move needed numbers.  The industry continues to monitor the availability of market-ready hogs and hog weights.  Demand for US pork on a global market has been relatively strong overall, helping to provide some price support. Barrows and gilts at the National Daily Direct closed $.88 higher with a base range of $79 to $87 and a weighted average of $85.31; the Iowa/Minnesota closed $2.23 higher with a weighted average of $86.06; the Western Corn Belt closed $1.20 higher with a weighted average of $85.75; the Eastern Corn Belt closed with a weighted average of $84.51. 

Butcher hog prices at the Midwest cash markets are steady at $69. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $51 to $63.  Barrows and gilts are steady with moderate demand for moderate offerings at $48 to $58.  Boars ranged from $18 to $28 and $8 to $15. 

Pork values closed higher – up $.56 at $99.87. Butts and ribs were both sharply higher.  Bellies, hams, and loins were higher. Picnics were lower. Estimated hog slaughter was 479,000 head – up 10,000 on the week and up about 5,000 on the year.