Market News

Cattle futures under pressure heading into Friday

At the Chicago Mercantile Exchange, live and feeder cattle were lower ahead of the week’s direct cash business, pressure from the recent trend in boxed beef, and spillover from the broader markets.  Feeders had additional pressure from the higher move in corn.  August live closed $.37 lower at $174.57 and October lives closed $.45 lower at $177.42.  August feeders closed $2.42 lower at $242.27 and September feeders closed $2.82 lower at $245.32. 

There was a solid round of direct cash cattle business that took place on Thursday.  Live deals in the South were marked at $178, steady to $1 lower than the previous week’s weighted averages.  The rest of cattle country was quiet.  Look for more business to take place before the end of the day Friday.

In South Dakota last week, there was another light offering of feeder cattle.  Steers and heifers were met with steady to higher undertones.  The USDA says demand was very good for all weights and the market remains active.  Receipts were up on the week and the year.  Feeder supply included 50% steers and 95% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 679 to 696 pounds brought $247 to $271.50 for an average price of $260.61 and feeder steers 953 to 992 pounds brought $210.50 to $217 for an average price of $211.66.  Medium and Large 1 feeder heifers 656 to 697 pounds brought $226 to $248 for an average price of $240 and feeder heifers 801 to 846 pounds brought $206 to $220.60 for an average price of $214.87. 

Boxed beef closed lower on light demand for moderate offerings. Choice was $2.91 lower at $319.87 and Select was $2.72 lower at $289.97.  The Choice/Select spread is $29.90.  Estimated cattle slaughter was 127,000 head – up 2,000 on the week and the year. 

Lean hog futures were mixed, cash business was higher while pork values were pressured on Thursday.  August lean hogs closed $.32 lower at $97.12 and October lean hogs closed $1.15 higher at $81.70. 

Cash hogs closed higher with a solid negotiated run.   Strong pork demand continues to be the story for the cash hog market.  Demand for US pork on the global market has been relatively strong and so has domestic demand.  Both are supportive to prices.  Packers will likely remain more aggressive in their procurement efforts and bid up to move needed numbers.  The industry continues to monitor the availability of market-ready hogs. Barrows and gilts at the National Daily Direct closed $1.88 higher with a base range of $88 to $103 and a weighted average of $100.20; the Iowa/Minnesota closed $2.29 higher with a weighted average of $100.61; the Western Corn Belt closed $2.09 higher with a weighted average of $100.40.  Prices at the Eastern Corn Belt was not reported due to confidentiality.

Butcher hog prices at the Midwest cash markets are steady at $68. At Illinois, slaughter sow prices were steady with moderate demand for heavy offerings at $28 to $39.  Barrows and gilts were steady with moderate demand for moderate offerings at $52 to $62.  Boars ranged from $15 to $25 and $5 to $10. 

Pork values closed lower – down $3.69 at $105.00.  Bellies and butts were sharply lower.  Ribs and hams are lower.  Picnics and loins were higher.  Estimated hog slaughter was 472,000 head – up 16,000 on the week and 7,000 on the year.