Market News

Cattle futures up, waiting on direct business

At the Chicago Mercantile Exchange, live and feeder cattle were higher, waiting on the week’s direct business to develop.  August live cattle closed $.82 higher at $185.92 and October live closed $1.20 higher at $186.85.  August feeder cattle closed $2.27 higher at $263.37 and September feeders closed $2.30 higher at $263.62.  

Direct cash cattle trade activity picked up some Wednesday.  There were a handful of deals reported in parts of Iowa at $308, but it wasn’t enough business to establish an accurate price trend for the week.  Bids surfaced at $186 to $188 live in the South and $308 to $310 dressed in the North.  That’s still a long way from current asking prices of $192 live in the South and $315 dressed in the North.  It looks like business is going to hold out until sometime on Friday. 

At the Kingsville Livestock Auction in Missouri, steers were lightly tested but were mostly steady.  Heifer calves sold with a firm to higher undertone.  The best test was on yearling heifers, which were steady.  The USDA says demand was moderate to good for a moderate supply featuring several loads of yearling heifers.  Receipts were down on the week and the year.  Feeder supply included 21% steers and 72% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 562 to 594 pounds brought $308 to $317 and feeder steers 601 to 646 pounds brought $285.50 to $294.  Medium and Large 1 feeder heifers 653 to 681 pounds brought $272 to $282.50 and feeder heifers 702 to 746 pounds brought $267.50 to $268. 

Boxed beef closed lower on light demand for moderate offerings.  Choice was $.55 lower at $329.84 and Select closed $2.10 lower at $304.38.  The Choice/Select spread is $25.46. Estimated cattle slaughter was 120,000 head – up 3,000 on the week and down about 6,000 on the year.

Lean hog futures ended the day mostly lower with ongoing concerns about demand.  August lean hogs closed $.05 higher at $89.92 and October lean hogs closed $.10 lower at $74.17. 

Cash hogs closed lower with a moderate negotiated run.  Processors weren’t as aggressive in their procurement efforts Wednesday afternoon, prices reflected that.  Hog weights pulled back this week – down nearly 3 pounds as they continue a seasonal decline.  But, weights are still nearly 8 pounds above last year’s level.  The is monitoring the supplies of market-ready hogs.  Demand remains a bright spot as U.S. pork continues to be competitive on the global market. Barrows and gilts at the National Daily Direct closed $.68 lower with a base range of $83 to $93 and a weighted average of $90.97; the Iowa/Minnesota closed $.77 lower with a weighted average of $91.35; the Western Corn Belt closed $.42 lower with a weighted average at $91.35.  Prices at the Eastern Corn Belt was not reported at midday due to confidentiality. 

At Illinois, slaughter sow prices were $3 lower with moderate demand for light offerings at $58 to $70.  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 $.69 at $93.63. Butts were sharply lower. Bbellies, ribs, and hams were also lower.  Picnics and loins were higher.

Estimated hog slaughter was 479,000 head – up 13,000 on the week and up about 6,000 on the year.