Market News

Cattle futures supported by sharply higher boxed beef

At the Chicago Mercantile Exchange, live and feeder cattle were higher on tight-ready supplies and the sharply higher boxed beef.  The trade is also waiting for direct business to develop and this week’s Cattle on Feed report. August live cattle closed $5.95 higher at $249.20 and October live cattle closed $5.20 higher at $242. August feeder cattle closed $5.32 higher at $366.87 and September feeder cattle closed $5.75 higher at $365.27. 

Direct cash cattle trade activity was quiet Tuesday.  Bids and asking prices didn’t surface.  Showlists for the week are mixed, higher in Kansas and Nebraska/Colorado, but lower in Texas.  Significant trade volume isn’t expected until sometime Thursday or Friday. 

At the Tina Livestock Market in Missouri, steer and heifer calves were mostly steady, with feeders selling on a lighter test.  Receipts were up on the week, but down on the year.  Feeder supply included 58 percent steers with 40 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 550 to 587 pounds brought $450 to $483 and feeder steers 705 to 717 pounds brought $402 to $407.  Medium and Large 1 feeder heifers 500 to 544 pounds brought $426 to $440 and feeder heifers 600 to 646 pounds brought $370 to $416. 

Boxed beef was sharply higher with solid demand for moderate offerings.  Choice was $4.53 higher at $399.58 and Select was $.44 higher at $376.85.  The Choice/Select spread was $22.73.   Estimated cattle slaughter was 109,000 head, even on the week and down more than 9,000 on the year. 

Lean hog futures closed mixed on spread trade with ongoing concerns about demand.  July lean hogs closed $1.77 lower at $94.80 and August lean hogs closed $.72 lower at $95.05. 

Cash hogs closed higher with a solid negotiated run.   Processors have started the week a bit more aggressive in their procurement efforts and are moving more numbers.  Supplies of market-ready hogs are ample, which makes demand crucial.  There are concerns about the strength of long-term demand for US pork on the global market.  Domestic demand could see a boost with summer grilling season in full swing and pork’s competitive price in the retail space.  The industry also continues to monitor the availability of market-ready hogs and hog weights.   The USDA’s Quarterly Hogs and Pigs report is out next week. Barrows and gilts at the National Daily Direct are $.32 higher with a base range of $90 to $98 and a weighted average of $97.57; the Iowa/Minnesota had no comparison with a weighted average of $97.93; the Western Corn Belt is $.64 higher with a weighted average of $97.89.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets were steady at $60.   At Illinois, slaughter sows were steady with moderate demand for moderate offerings at $47 to $59.  Barrows and gilts were steady with moderate demand for moderate offerings at $51 to $61.  Boars ranged from $25 to $30 and $15 to $20. 

Pork values closed lower, down $1.55 at $95.57.  Butts and hams were sharply lower.  Picnic, bellies, loins, and ribs were lower. Estimated hog slaughter was 485,000 head, up 9,000 on the week and up about 7,000 on the year.