Market News

Cattle, hog future higher heading into Friday

At the Chicago Mercantile Exchange, live and feeder cattle were up, watching direct business unfold.  June lives closed $.25 higher at $175.85 and August lives closed $.62 higher at $173.32.  May feeder cattle closed $1.30 higher at $243.87 and August feeders closed $2.02 higher at $254.47. 

There was another light round of direct cash cattle trade reported Thursday.  Deals in Nebraska were at $297 dressed and $189 live and there were a few deals in Iowa at $188 live, $2 lower than the previous week’s weighted averages.  Bids surfaced across all major feeding areas, but were well below current asking prices of $186-plus live in the South and $298-plus dressed in the North. The standoff could push business into late into the day Friday.

At the Mitchell Livestock Auction in South Dakota, feeder steers 950 to 1000 pounds were $4 higher.  Feeder heifers 750 to 900 pounds were $1 to $4 lower.  The USDA says demand was moderate on a lighter supply.  Receipts were down on the week and the year, largely due to the weekend snowstorm.  Feeder supply included 39% steers and 97% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 800 to 836 pounds brought $238 to $248 and feeder steers 958 to 978 pounds brought $231.60 to $232.  Medium and Large 1 feeder heifers 801 to 849 pounds brought $221.85 to $233 and feeder heifers 852 to 899 pounds brought $214 to $221. 

Boxed beef was sharply lower and lower on light demand for solid offerings.  Choice is $4.15 lower at $297.15 and Select closed $.87 lower at $296.05.  The Choice/Select spread has narrowed to $1.10. Estimated cattle slaughter was 122,000 head – up 6,000 on the week and down nearly 1,000 on the year.

Lean hog futures ended the day higher, supported by the stronger pork values during the session. May lean hogs closed $.07 higher at $95.07 and June lean hogs closed $.25 higher at $105.

Cash hogs closed higher with a light negotiated run. Processors had to get a little more aggressive Thursday afternoon and bid up to move needed numbers.  Overall, demand has been really strong for US pork on the global market and has found some strength recently on the domestic side.  Both have been relatively supportive to prices. However, Thursday’s Export Sales report from the USDA did show a big drop-off.  The industry continues to monitor the availability of market-ready hogs and hog weights. Barrows and gilts at the National Daily Direct closed $1.19 higher with a base range of $78 to $91 and a weighted average of $87.23; the Iowa/Minnesota closed $2.20 higher with a weighted average of $88.60; the Western Corn Belt closed $1.66 higher with a weighted average of $88.09.  Prices at the Eastern Corn Belt 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 $50 to $62.  Barrows and gilts were $1 higher with moderate demand for moderate offerings at $45 to $55.  Boars ranged from $15 to $25 and $8 to $15. 

Pork values closed sharply higher – up $3.24 at $98.15.  Bellies jumped $11.53 Thursday.  Picnics, butts, loins, and hams were also sharply higher.  Ribs were lower. Estimated hog slaughter was 491,000 head – up 2,000 on the week and up more than 7,000 on the year.