Market News

Cattle, hog future start the week higher

At the Chicago Mercantile Exchange, live and feeder cattle were higher with sharply higher boxed beef during the session. April live cattle closed $1.85 higher at $205.02 and June lives closed $1.72 higher at $201.07.  April feeder cattle closed $3.00 higher at $284.20 and May feeders closed $2.65 higher at $285.30.

Direct cash cattle trade activity was quiet, typical for a Monday.  Showlists this week are mixed, higher in Texas, but lower in Kansas, and Nebraska, and Colorado.  Bids and asking prices didn’t surface. Significant trade volume will likely be delayed until the latter half of the week.

At midsession, at the Oklahoma National Stockyards, feeder steers were $5 to $10 higher and feeder heifers were $2 to $6 higher.  The USDA says demand was very good for feeder cattle.  Steer calves were $3 to $6 higher.  Heifer calves were mostly steady.  Some buyers remain very active.  Fire weather warnings continue throughout the state. Receipts were up on the week and the year.  Feeder supply included 52% steers and 72% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 650 to 694 pounds brought $303 to $332 and feeder steres 750 to 795 pounds brought $276 to $294.  Medium and Large 1 feeder heifers 608 to 649 pounds brought $289 to $313 and feeder heifers 702 to 746 pounds brought $266 to $274. 

Boxed beef closed higher with good demand for moderate offerings.  Choice was $2.89 higher is $321.16 and Select closed $1.58 higher at $307.90.  The Choice/Select spread is $13.26.  Estimated cattle slaughter was 114,000 head – down 1,000 on the week and down more than 3,500 on the year.

Lean hog futures closed higher with sharply higher pork values during the session. April lean hogs closed $1.45 higher at $88.07 and May lean hogs closed $2.25 higher at $91.45. 

Cash hogs closed lower with a fairly light negotiated run. Processors didn’t start the week off very aggressive in their procurement efforts.  That isn’t too surprising considering that’s been more of the pattern recently.  Consumer sentiment has dropped, which actually could provide a bump for domestic demand of pork as it remains more competitively priced than some other proteins.  Global demand for U.S. pork, overall, has been strong.  But the ongoing concerns about tariffs and trade tensions could have a negative impact on demand.  The industry continues to monitor the availability of market-ready hogs and hog weights.  Barrows and gilts at the National Daily Direct were $1.00 lower with a base range of $86 to $92.50 and a weighted average of $88.05 and the Western Corn Belt closed $.41 lower with a weighted average of $88.05.  Prices at the Iowa/Minnesota and the Eastern Corn Belt were not reported due to confidentiality.

Butcher hog prices at the Midwest cash markets are steady at $60.

Pork values closed firm – up $.27 at $97.65.  Loins were sharply higher, and butts were higher.  Picnics, butts, ribs, and hams were lower to sharply lower. Estimated hog slaughter was 487,000 head – even on the week and up about 6,000 on the year.