Market News

Cattle futures up ahead of widespread direct business

At the Chicago Mercantile Exchange, live and feeder cattle were higher, waiting on direct business to develop.  August live cattle closed $.82 higher at $185.10 and October live cattle closed $1.50 higher at $186.65.  August feeder cattle closed $3.72 higher at $261.10 and September feeders closed $3.37 higher at $261.32. 

Direct cash cattle trade activity was quiet again Tuesday.  Bids and asking prices didn’t surface. With the mid-week 4^th of July holiday, it is uncertain if the bulk of the week’s business will take place before the holiday or hold out until Friday. 

At the Tina Livestock Market in Missouri, feeder steers were $15 to $25 higher and feeder heifers were $10 to $20 higher with some spots even higher.  The USDA says there were several pot loads of 600 to 700 weight cattle that were offered, and demand was very good on the moderate to heavy supply.  Receipts were up from the most recent sale and on the year.  Feeder supply included 39% steers and 51% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 505 to 526 pounds brought $340 to $389.25 and feeder steers 711 to 733 pounds brought $269 to $284.85.  Medium and Large 1 feeder heifers 615 to 643 pounds brought $278 to $298.50 and feeder heifers 652 to 691 pounds brought $278 to $287.50. 

Boxed beef closed higher on good demand for moderate offerings.  Choice is $1.21 higher at $330.39 and Select closed $.07 higher at $306.48.  The Choice/Select spread is $23.91. Estimated cattle slaughter was 118,000 head – down 3,000 on the week.

Lean hog futures ended the day mixed as long-term demand uncertainties linger.  August lean hogs closed $1.60 higher at $89.77 and October lean hogs closed $.17 higher at $74.27.   

Cash hogs closed higher with a substantial negotiated run.  Processors were aggressive in their procurement efforts and bid up to move needed numbers.  It isn’t too surprising considering it is a holiday-shortened week.  Demand, overall, is a bright spot, as U.S. pork remains extremely competitive on the global market.  But, there is plentiful pork available as supplies of market-ready hogs are ample and hog weights continue to run well above year-ago levels. Barrows and gilts at the National Daily Direct closed $2.91 higher with a base range of $81 to $94 and a weighted average of $91.35; the Iowa/Minnesota closed $.95 higher with a weighted average of $92.12; the Western Corn Belt closed $.60 higher with a weighted averages of $91.77.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $60. At Illinois, slaughter sow prices were $2 lower with moderate demand for moderate to heavy offerings at $61 to $73.  Barrows and gilts were steady with moderate demand for moderate offerings at $52 to $62.  Boars ranged from $18 to $28 and $8 to $15. 

Pork values closed lower – down $1.09 at $94.32.  Ribs, loins, butts, and hams were lower.  Picnics were about steady and bellies were higher. Estimated hog slaughter was 471,000 head – down 10,000 on the week.