Market News

Cattle, hog futures lower to start the week

At the Chicago Mercantile Exchange, live and feeder cattle were lower as the market remains concerned about demand.  June live cattle closed $4.02 lower at $194.17 and August lives closed $4.17 lower at $190.52.  May feeder cattle closed $3.60 lower at $271.12 and August feeder cattle closed $3.00 lower at $278.05. 

Direct cash cattle trade activity was unsurprisingly quiet on 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 is expected to hold out until late in the week.

At mid-session, at the Oklahoma National Stockyards, feeder steers were $5 to $10 lower.  Steer calves weighing more than 500 pounds were $15 lower and steer calves weighing less than 500 pounds were unevenly steady.  Feeder heifers were $12 to $15 lower and heifer calves were $20 to $25 lower.  The USDA says demand was moderate for the fairly light offering.  Quality was average.  Receipts were down on the week and the year.  Feeder supply included 46% steers and 44% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 555 to 584 pounds brought $339 to $348 and feeder steers 703 to 749 pounds brought $285 to $300.  Medium and Large 1 feeder heifers 625 to 648 pounds brought $260 to $294 and feeder heifers 765 to 778 pounds brought $248 to $260. 

Boxed beef closed higher with solid demand for fairly light offerings.  Choice was $1.05 higher at $339.50 and Select closed $2.12 higher at $319.30.  The Choice/Select spread is $20.20.  Estimated cattle slaughter was 108,000 head – up 4,000 on the week and down more than 12,000 on the year. 

Lean hog futures closed lower, with ongoing concerns about demand certainty.  May lean hogs closed $1.05 lower at $84.07 and June lean hogs closed $1.50 lower at $90.50. 

Cash hogs closed sharply lower with a solid negotiated run.  Processors were able to move needed numbers at much lower prices.  There is a lot of concern about demand certainty as the potential for trade disruptions continue.  China is one of the largest buyers of U.S. pork and last week announced retaliatory tariffs that will be implemented on April 10^th – totaling 81 percent.  The industry continues to monitor available supplies of market-ready hogs and hog weights.  More hogs at heavier weights adds additional pork to the market that will need to be moved. Barrows and gilts at the National Daily Direct were $2.42 lower with a base range of $80 to $89 and a weighted average of $84.98; the Iowa/Minnesota closed $3.32 lower with a weighted average of $84.36; the Western Corn Belt closed $3.25 lower with a weighted average of $84.36; no comparison in the Eastern Corn Belt but a weighted average of $87.29. 

Butcher hog prices at the Midwest cash markets are $3 higher at $60. At Illinois, slaughter sow prices were $2 lower with moderate demand for moderate offerings at $44 to $56.  Barrows and gilts were steady with moderate demand for moderate offerings at $52 to $62.  Boars ranged from $25 to $35 and $18 to $25. 

Pork values closed higher – up $1.50 at $99.34.  Ribs, loins, and picnics were all sharply higher.  Hams were up.  Butts and bellies were lower and sharply lower. Estimated hog slaughter was 488,000 head – up 24,000 on the week and up about 22,000 on the year.