Market News

Cattle futures up ahead of On Feed numbers

At the Chicago Mercantile Exchange, live and feeder cattle were up waiting on direct business and ahead of Friday’s On Feed numbers from the USDA.  April lives closed $1.65 higher at $208.47 and June lives closed $2.17 higher at $205.02.  April feeder cattle closed $1.72 higher at $288.45 and May feeders closed $1.60 higher at $289.10.   

Direct cash cattle trade activity has been non-existent.  Packer inquiry has been limited and bids have been elusive.  Asking prices were at $207-plus live in the South, but still haven’t been established in the North.  Significant trade volume will likely be delayed until sometime Friday. 

At the Hub City Livestock Market in South Dakota, steers 600 to 749 pounds were $10 higher with instances of $15 higher.  Steers 750 to 959 pounds were mostly steady with instances of up to $7 higher on 750 to 799 pounds.  Heifers 600 to 649 pounds and 700 to 749 pounds were fully steady.  Heifers 650 to 699 pounds and 740 to 799 pounds were unevenly steady.  The USDA says like recent weeks, demand was very good for grass and backgrounding type cattle and good to very good demand for finishing type cattle depending on flesh condition.  The large offering consisted of many packages and loads, with quite a few home-raised cattle. The market was active for finishing-type cattle, which were mostly attractive in quality.  Receipts were down on the week and the year.  Feeder supply included 71% steers and 86% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 651 to 691 pounds brought $338 to $352.50 and feeder steers 851 to 893 pounds brought $270.50 to $288.75.  Medium and Large 1 feeder heifers 611 to 645 pounds brought $305 to $320 and feeder heifers 762 to 782 pounds brought $272 to $291.

Boxed beef closed mixed with light to moderate demand for moderate offerings. Choice is $1.55 lower at $328.06 and Select was $.68 higher at $309.36.  The Choice/Select spread is $18.70. Estimated cattle slaughter was 114,000 head – down 7,000 on the week and down nearly 2,000 on the year.

Lean hog futures closed lower with lingering concerns about domestic and export demand.  April lean hogs closed $.02 lower at $85.55 and May lean hogs closed $.10 lower at $88.60. 

Cash hogs closed lower with a moderate negotiated run. Processors were able to move needed numbers without having to bid up.  Demand for U.S. pork on the global market has been strong, but the industry is seeing consecutive weeks with export sales hitting marketing year lows.  There could be some opportunity for domestic demand to see a boost as U.S. pork remains a more competitively priced protein.  The industry is also looking at the availability of market-ready hogs and hog weights. Barrows and gilts at the National Daily Direct closed $1.63 lower with a base range of $85.50 to $92 with a weighted average of $89.39; the Iowa/Minnesota closed $1.59 lower with a weighted average of $89.59; the Western Corn Belt closed $1.84 lower with a weighted average of $89.45; the Eastern Corn Belt had no comparison but a weighted average of $89.21.

Butcher hog prices at the Midwest cash markets are steady at $60. 

Pork values closed higher – up $.67 at $95.86.  Bellies, butts, ribs, and loins were all higher.  Picnics and hams were lower. Estimated hog slaughter was 471,000 head – down 18,000 on the week and down about 15,500 on the year.