Market News

Cattle futures watching direct business develop

At the Chicago Mercantile Exchange, live cattle were up, and feeders were lower, waiting on the week’s direct cash business.  October live cattle closed $.22 higher at $179.27 and December live cattle closed $.07 higher at $178.12.  September feeder cattle closed $1.67 lower at $238.90 and October feeders closed $.90 lower at $238.12. 

Direct cash cattle trade was relatively quiet Wednesday.  There was a small round of trade reported in Kansas at $187 live, $1 lower than the prior week’s weighted averages.  Probably not enough business to establish an accurate price trend.  Look for significant trade volume to hold out until sometime Thursday or Friday. 

At the Kingsville Livestock Auction in Missouri, calves under 550 pounds were too lightly tested for an accurate price trend.  Weaned calves over 550 pounds and yearlings were mostly $4 to $10 lower.  The USDA says demand was moderate for a moderate supply.  The recent slide in cattle futures has buyers more reserved.  Receipts were up on the week and the year.  Feeder supply included 51% steers and 75% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 563 to 590 pounds brought $303 to $312 and feeder steers 652 to 689 pounds brought $273.50 to $288.  Medium and Large 1 feeder heifers 623 to 649 pounds brought $264 to $269.50. 

Boxed beef closed lower with light demand for solid offerings.  Choice was $1.96 lower at $313.85 and Select closed $.79 lower at $299.47.  The Choice/Select spread is $14.66. Estimated cattle slaughter was 122,000 head – even on the week and down about 500 on the year.

Lean hog futures ended the day lower, concerned about long-term domestic demand certainty. October lean hogs closed $1.82 lower at $74.57 and December lean hogs closed $1.87 lower at $67.07. 

Cash hogs closed higher with a moderate negotiated run. Processors didn’t have to get too aggressive in their procurement efforts to move needed numbers on Wednesday.  Global demand for U.S. pork continues to be a bright spot for the market, helping provide some price support.  Hog weights are down again this week to 281.6 pounds, a 1.1-pound decline on the week.  But are still 4.6 pounds above year-ago levels. The industry also continues to monitor the availability of market-ready hogs. Barrows and gilts at the National Daily Direct closed $.04 higher with a base range of $78 to $87 and a weighted average of $85.92; the Iowa/Minnesota closed $.45 higher with a weighted average of $85.83; the Western Corn Belt closed $.44 higher with a weighted average of $85.96.  Prices at the Regional Direct markets were not reported due to confidentiality.

Butcher hog prices at the Midwest cash markets are steady at $55. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $43 to $55.  Barrows and gilt were steady with moderate demand for moderate offerings at $48 to $58.  Boars ranged from $18 to $28 and $8 to $15. 

Pork values closed sharply lower – down $3.35 at $98.96. Bellies were sharply lower.  Ribs, loins, picnics, and butts were also lower.  Hams were firm. Estimated hog slaughter was 481,000 head – even on the week and up about 11,000 on the year.