Market News

Cattle, hog futures lower heading into Friday

At the Chicago Mercantile Exchange, live and feeder cattle were lower, waiting on direct business and Friday’s On Feed report from the USDA. April live cattle closed $2.12 lower at $233.27 and June live cattle closed $2.30 lower at $231.70.  April feeder cattle closed $6.07 lower at $347.75 and May feeder cattle closed $6.45 lower at $343.42. 

Direct cash cattle trade activity has been slow to develop this week.  Bids resurfaced at $368 dressed in the North, but asking prices remained elusive.  Significant trade volume could very well hold out until some time on Friday, especially with the Cattle on Feed report.

At the Hub City Livestock Auction in South Dakota, steers 750 to 899 pounds were $7 to $15 higher, with spots of $20 higher on steers 750 to 799 pounds.  Heifers 600 to 799 pounds were $6 to $15 higher.  The USDA says demand was good for packages and loads.  Quality ranged from average to attractive and the offering consisted of a few more greener, backgrounding, or grass-type cattle.  The market was active.  Receipts were down on the week and the year.  Feeder supply included 66 percent steers with 92 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 623 to 648 pounds brought $440 to $445 and feeder steers 852 to 899 pounds brought $346 to $372.50.  Medium and Large 1 feeder heifers 662 to 695 pounds brought $382 to $403 and feeder heifers 751 to 790 pounds brought $343.50 to $359. 

Boxed beef was lower and sharply lower with light demand for moderate offerings.  Choice was down $1.45 at $400.30 and Select was $3.72 lower at $392.45.  The Choice/Select spread was $7.85.   Estimated cattle slaughter was 106,000 head, up 1,000 on the week and down more than 5,000 on the year. 

Lean hog futures closed lower, pressured by ongoing uncertainty around demand.  April lean hogs closed $1.70 lower at $92.05 and May lean hogs closed $2.65 lower at $96.05. 

Cash hogs closed lower with a fairly light negotiated run. The cash hog market had a pretty solid start to business for the week as processors moved decent numbers, so a slower finish isn’t a big surprise.  The key to the market right now is demand.  While this week’s export sales report showed a jump, numbers are still running below the prior weeks’ averages.  That leads to lingering uncertainty about the strength of global demand for U.S. pork long-term.  Now, the domestic market continues to look for opportunities to capitalize on pork’s competitive price in the retail space. Barrows and gilts at the National Daily Direct closed $.49 lower with a base range of $87 to $94 and a weighted average of $92.80; the Iowa/Minnesota closed $.04 lower with a weighted average of $93.23; the Western Corn Belt closed $.06 lower with a weighted average of $93.23.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets were steady at $62 in Dorchester, Wisconsin and higher in Red Oak, Iowa at $62.

Pork values closed lower, down $.72 at $98.10.  Bellies, hams, and butts were down.  Picnics, ribs, and loins were higher.   Estimated hog slaughter was 492,000 head, even on the week and up about 28,000 on the year.