Market News

Cattle futures up ahead of USDA’s On Feed report

At the Chicago Mercantile Exchange, live and feeder cattle were up, supported by higher boxed beef, ahead of this week’s Cattle on Feed report from the USDA. June live cattle closed $1.47 higher at $215.62 and August live cattle closed $1.85 higher at $210.50.  August feeder cattle closed $3.35 higher at $299.77 and September feeder cattle closed $3.35 higher at $298.62. 

Direct cash cattle trade was relatively quiet Thursday, with just some light scattered business reported.  For the week, dressed deals have ranged from $358 to $370, mostly $360, $2 higher than the previous week’s weighted average basis in Nebraska.  The handful of live deals in Kansas were at $224 to $227, but not enough business to establish an accurate price trend. 

At the Mitchell Livestock Auction in South Dakota, the undertone on both steers and heifers were higher.  No trend was available for feeder steers and heifers.  The USDA says demand was good.  Receipts were up on the week and the year.  Feeder supply included 44 percent steers and 93 percent of the offering weighed more than 600 pounds.  Medium and Large 1 feeder steers 756 to 789 pounds brought $307 to $316 and feeder steers 838 pounds brought $304.25.  Medium and Large 1 feeder heifers 810 to 849 pounds brought $273 to $284.50 and feeder heifers 860 pounds brought $279.25. 

Boxed beef closed higher with good demand for fairly light offerings.  Choice was $1.38 higher at $360.97 and Select closed $.67 higher at $348.95.  The Choice/Select spread is $12.02. Estimated cattle slaughter was 116,000 head – down 4,000 on the week and down more than 5,000 on the year.

Lean hog futures closed mixed with pork values higher and cash hogs sharply lower during the session. June lean hogs closed $.82 lower at $98.70 and July lean hogs closed $.47 lower at $102.05. 

Cash hogs closed mixed with a fairly light negotiated run. The cash hog market continues to struggle with inconsistency.  This week’s Export Sales report from the USDA showed global pork sales were up substantially.  This week did mark the return of China to the purchasers’ list following the agreement between the two countries to pause tariffs and renew trade negotiations.  The industry remains optimistic that domestic demand will see a bump with the arrival of the summer grilling season. Barrows and gilts at the National Daily Direct were $.01 lower with a base range of $88 to $99.50 and a weighted average of $95.29; the Iowa/Minnesota closed $4.82 higher with a weighted average of $96.45; the Western Corn Belt closed $.89 higher with a weighted average of $96.45.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady to $66 and business in Red Oak, Iowa is higher at $59.

Pork values closed firm – up $.23 at $100.27.  Picnics, bellies, and loins were all higher.  Ribs were sharply lower.  Butts and hams were also lower. Estimated hog slaughter was 479,000 head – down 2,000 on the week and down nearly 3,000 on the year.