Market News

Feeder cattle futures pressured by the higher move in corn

At the Chicago Mercantile Exchange, live and feeder cattle were lower waiting for additional direct business to develop.  Feeders were also pressured by the higher move in corn.  June live cattle closed $1.70 lower at $247.70 and Select was $2.47 lower at $241.07.  August feeder cattle closed $5.75 lower at $356.55 and September feeder cattle closed $6.27 lower at $353.87. 

Direct cash cattle trade activity was quiet following Monday’s light trade.  Bids did resurface at $260 live in the South.  There was a light round of business that took place on Monday across all feeding areas.  The early start to the week’s trade is very unusual.  Dressed deals in the North were at $400, which is $2 to $3 below the previous week’s weighted averages.  Live deals in the South were at $260, which was about $3 higher than the prior week’s business.  It was a relatively light test, so it may not set the tone for the rest of the week’s business. 

At the Callaway Livestock Center in Missouri, steer calves 400 to 650 pounds were fully steady to firm, with spots of $10 to $12 higher.  Steers 650 to 750 pounds sold firm to a higher undertone.  Heifer calves 400 to 600 pounds were fully steady to firm with spots of $10 higher on 450 to 500 pound heifers.  Heifers weighing more than 600 pounds were lightly tested.  The USDA says demand was very good on a moderate supply.  Overall quality was good on calves and yearlings.  The market was very active.  Receipts were up on the week, but down on the year.  Feeder supply include 69 percent steers with 42 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 660 to 694 pounds brought $414.50 to $439 and feeder steers 703 to 744 pounds brought $400 to $417.  Medium and Large 1 feeder heifers 458 to 495 pounds brought $470 to $515 and feeder heifers 623 to 647 pounds brought $399 to $406.

Boxed beef was lower with light demand for light offerings.  Choice was down $.49 at $390.73 and Select was $.22 lower at $391.27.  The Choice/Select spread is inverted, at $.54.  Estimated cattle slaughter was 108,000 head, up 1,000 on the week and down more than 13,000 on the year. 

Lean hog futures closed lower on demand uncertainty.  June lean hogs were down $1.80 at $98.42 and July lean hogs closed $1.70 lower at $102.95. 

Cash hogs had no comparison, but solid negotiated purchases.  It was a more active day for the cash hog market as processors were more aggressive in their procurement efforts.  The market is largely focused on demand.  While there have been some bright spots when it comes to demand for US pork on the global market, there are long-term concerns that linger.  There’s opportunity for domestic demand to see a boost with the return on the summer grilling season, especially as pork remains a competitively priced protein in the retail space. Barrows and gilts at the National Daily Direct had a base range of $88 to $96.50 with a weighted average of $95.19; the Iowa/Minnesota had a weighted average of $95.37; the Western Corn Belt a weighted average of $95.36.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets were steady at $66.

Pork values closed lower, down $1.46 at $95.52.  Loins were down sharply.  Picnics, bellies, and hams were all lower.  Ribs and butts were higher.    Estimated hog slaughter was 491,000 head, up 3,000 on the week and up about 8,000 on the year.