Market News

Cattle futures supported by mostly lower corn

At the Chicago Mercantile Exchange, live and feeder cattle are higher, led by feeders with support from the mostly lower corn.  June live cattle closed $2.12 higher at $123.10 and August live cattle closed $2.15 higher at $123.17.  August feeder cattle closed $3.25 higher at $158.35 and September feeder cattle closed $2.97 higher at $160.35. 

Direct cash cattle trade activity showed some improvement on Tuesday with a very light, scattered trade reported.  Deals in Iowa were at $197 dressed.  Live business in Kansas was at $120 to $126.  The CBP Cash Pool in Texas had live sales at $122. Look for trade to pick up over the balance of the week.

At the Joplin Regional Stockyards in Missouri, compared to last week feeder steers were $2 to $5 higher.  Feeder heifers were $3 to $8 higher, with the most advance on heavier weights.  The USDA says supply was moderate with very good demand.  Receipts were up on the week and the year.  Feeder supply included 50% steers and 60% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 600 to 643 pounds brought $152 to $166 and feeder steers 752 to 793 pounds brought $141 to $148.  Medium and Large 1 feeder heifers 552 to 548 pounds brought $138 to $154 and feeder heifers 706 to 745 pounds brought $129 to $139.50. 

Boxed beef closed lower to sharply lower on light demand for moderate offerings.  Choice closed $5.45 lower at $315.75 and Select closed $1.71 lower at $279.75.  The Choice/Select spread is $36. Estimated cattle slaughter is 120,000 head – up 26,000 on the week and up 5,000 on the year. 

Lean hog futures ended the day mostly higher ahead of this week’s market-moving USDA numbers.  June lean hogs closed $.47 higher at $107.52 and August lean hogs closed $.02 higher at $103.70. 

Cash hogs closed sharply higher with a solid negotiated run.  Processors continue to monitor the availability of market-ready barrows and gilts and were aggressive in their procurement efforts on Tuesday and prices reflected that. The demand strength of US pork on the global market and domestically has been very supportive to the market.  The industry expects that to continue.  However, should a disruption occur, or demand on the global market wanes, it could put pressure on prices. Barrows and gilts at the National Daily Direct closed $4.47 higher with a base range of $114 to $138 and a weighted average of $128.04.  The Iowa/Minnesota had a weighted average of $131.75 and the Western Corn Belt had a weighted average of $132.07.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash market are steady at $80. At Illinois, slaughter sow prices were steady with good demand for heavy offerings at $40 to $50.  Barrow and gilt prices were $1 lower with good demand for heavy offerings at $83 to $90.  Boars ranged from $45 to $50 and $12 to $18. 

Pork values closed sharply lower – down $12.93 at $107.83.  Bellies dropped more than $59. Ribs were down more than $16.  Butts, hams, loins, and picnics were all sharply lower.  Estimated hog slaughter is 485,000 head – up 95,000 on the week and up 41,000 on the year.