Market News

Cattle futures start the week higher

At the Chicago Mercantile Exchange, live and feeder cattle were up sharply on technical buying and last week’s on feed numbers.  June live cattle closed $2.37 higher at $178.05 and August lives closed $2.85 higher at $176.40.  May feeder cattle closed $3.17 higher at $245.17 and August feeders closed $4.97 higher at $258.47. 

Direct cash cattle trade started the week in its typically quiet manner. Showlists are mixed, higher in Texas, but lower in Kansas and Nebraska/Colorado.  Bids and asking prices didn’t surface on Monday.  Significant trade volume will likely be delayed until at least midweek or later.

At the Oklahoma National Stockyards, feeder steers and heifers were $4 to $8 higher.  Steer and heifer calves were not well tested, but a sharply higher undertone was noted.  The USDA says demand was good and quality was average to attractive.  Receipts were down slightly on the week and down on the year.  Feeder supply included 47% steers and 85% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 750 to 790 pounds brought $248 to $270.50 and feeder steers 907 to 940 pounds brought $219.50 to $227.50.  Medium and Large 1 feeder heifers 650 to 697 pounds brought $232 to $264 and feeder heifers 762 to 794 pounds brought $216.50 to $236. 

Boxed beef closed higher – on good demand for moderate offerings. Choice was $.26 higher at $295.93 and Select closed $1.04 higher at $291.87.  The Choice/Select spread is $4.06. Estimated cattle slaughter was 113,000 head – down 8,000 on the week and down a little more than 12,000 on the year.

Lean hog futures ended the day mostly higher, on spread trade and demand expectations, with pork higher at midday.  May lean hogs closed $.47 higher at $96.70 and June lean hogs closed $.67 higher at $105.50. 

Cash hogs closed higher with a very small negotiated run. Processors had to get aggressive in their procurement efforts Monday to move even that small run of hogs.  That could be a good sign for this week’s business. Demand for U.S. pork has been strong on the global market and domestic demand has been showing some strength.  Both have been very good for prices.  The industry continues to monitor the availability of market-ready hogs and hog weights. Barrows and gilts at the National Daily Direct closed $1.82 higher with a base range of 483.50 to $92 and a weighted average of $90.31; the Iowa/Minnesota closed $.89 higher with a weighted average of $90.91; the Western Corn Belt closed $2.84 higher with a weighted average of $90.91.  Prices at the Eastern Corn Belt were not reported due to confidentiality.

Butcher hog prices at the Midwest cash markets were steady at $52. At Illinois, slaughter sow prices were steady with moderate demand for light offerings at $45 to $57.  Barrows and gilts were steady with moderate demand for moderate offerings at $51 to $61.  Boars ranged from $18 to $28 and $8 to $15. 

Pork values closed higher – up $1.61 at $101.70.  Bellies, ribs, and picnics were both sharply higher.  Hams, butts, and loins were weak to lower. Estimated hog slaughter was 487,000 head – up 5,000 on the week and up more than 20,000 on the year.