Market News

Feeder cattle higher as tighter supplies are expected

At the Chicago Mercantile Exchange, live cattle were mixed ahead of the week’s direct business, and feeder cattle were up on concerns about short supplies. October live cattle closed $1.55 lower at $235.60, and December live cattle closed $1.47 lower at $238.75.  October feeder cattle closed $.77 higher at $362.12, and November feeder cattle closed $.85 higher at $360.75. 

Direct cash cattle trade activity was quiet on Tuesday.  Bids and asking prices didn’t surface.  If business follows the trend of recent weeks, significant trade volume could hold out until sometime Thursday or Friday.

At the Tri-State Livestock Auction in Nebraska, feeder steers 400 to 500 pounds were $2 to $10 lower and steers 500 to 600 pounds were $2 to $10 higher.  Heifers were $10 to $20 higher, except heifers 550 to 650 pounds were $4 to $8 lower.  The USDA says demand was moderate to good on a nice offering.  Receipts were up on the week and the year.  Feeder supply included 52 percent steers and 40 percent of the offering weighed more than 600 pounds.  Medium and Large 1 feeder steers 556 to 579 pounds brought $460 to $473 and feeder steers 603 to 621 pounds brought $431 to $455.  Medium and Large 1 feeder heifers 751 to 790 pounds brought $337.50 to $354.50 and feeder heifers 806 pounds brought $334.75. 

Boxed beef closed lower and sharply lower with light demand for solid offerings.  Choice was $.59 lower at $380.80 and Select was $2.19 lower at $359.90.  The Choice/Select spread was $20.90. Estimated cattle slaughter was 121,000 head, even on the week and down more than 6,000 on the year.

Lean hog futures closed higher, supported by strength in cash and wholesale business.  October lean hogs closed $1.72 higher at $100.52 and December lean hogs closed $1.97 higher at $90.72. 

Cash hogs closed higher with a big negotiated run.  The cash hog market is off to a solid start to the week.  Processors have been more aggressive in their procurement efforts and have been bidding up to move needed numbers. The industry is looking ahead to this week’s Quarterly Hogs and Pigs report.  Pre-report expectations have all hogs and pigs as of September 1 about steady from year-ago levels.  The industry also continues to monitor demand, both on the global market and domestically as it monitors supply. Barrows and gilts at the National Daily Direct closed $.16 higher with a base range of $96 to $110.50 and a weighted average of $106.99; the Iowa/Minnesota closed $.21 higher with a weighted average of $107.15; the Western Corn Belt closed $.33 higher with a weighted average of $107.17.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $75. At Illinois, slaughter sow prices were $2 lower with moderate demand for heavy offerings at $66 to $78.  Barrows and gilts were steady with moderate demand for moderate offerings at $63 to $73.  Boars ranged from $25 to $35 and $18 to $25. 

Pork values closed lower, down $.62 at $112.68.  Bellies, loins, and butts were sharply lower.  Picnics were lower.  Ribs and hams were both sharply higher. Estimated hog slaughter was 489,000 head, up 1,000 on the week and up a little more than 1,000 on the year.