Market News

Feeder cattle mixed waiting on direct trade

At the Chicago Mercantile Exchange, live cattle were up, feeders were mixed ahead of wide-spread direct business.  April live cattle closed $1.02 higher at $234.12 and June live cattle closed $1.02 higher at $230.67.  April feeder cattle closed $.02 lower at $353.30 and May feeders closed $.12 lower at $349.35. 

Direct cash cattle trade activity was quiet again on Tuesday.  Bids and asking prices didn’t surface.  If trade follows the trend of recent weeks, look for the bulk of the week’s business to take place sometime Thursday or Friday. 

At the Callaway Livestock Center in Missouri, five-weight steers were mostly steady, six-weight steers were steady to $5 lower on a light test.  Heifer calves 450 to 500 pounds were mostly steady.  The USDA says demand was good on a light offering.  Receipts were down on the week and the year.  Feeder supply included 53 percent steers with 59 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 605 to 644 pounds brought $430 to $460 and feeder steers 915 pounds brought $340.  Medium and Large 1 feeder heifers 616 pounds brought $415 and feeder heifers 817 pounds brought $330. 

Boxed beef was sharply higher and higher with solid demand for moderate offerings.  Choice was $6.71 higher at $388.05 and Select was $.37 higher at $378.58.  The Choice/Select spread was $9.47.  Estimated cattle slaughter was 109,000 head, down 2,000 on the week and down more than 12,000 on the year.

Lean hog futures closed mixed on spread trade, as long-term demand concerns linger.  April lean hogs closed $.17 higher at $95.75 and May lean hogs closed $.10 lower at $99.92.    

Cash hogs closed lower with a big negotiated run. The cash hog market has struggled with consistency.  Processors have started the week moving decent numbers, but were able to do it on Tuesday without having to get aggressive in their procurement efforts. There are ample supplies of market-ready hogs which are running at higher weights.  But there is still a lot of uncertainty around demand, especially on the global market.  Pork remains a competitively priced protein in the retail space, which could help boost domestic demand. Barrows and gilts at the National Daily Direct were $.46 lower with a base range of $88 to $93 and a weighted average of $91.41; the Iowa/Minnesota was $.46 lower with a weighted average of $91.46; the Western Corn Belt closed $.46 lower with a weighted average of $91.46.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets were steady at midday at $70. Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $58 to $70.  Barrows and gilts were steady with moderate demand for moderate offerings at $45 to $55.  Boars ranged from $8 to $15 and $5 to $8. 

Pork values were unchanged at $98.50.  Ribs, picnics, and bellies were up.  While loins, hams, and butts were all lower.  Estimated hog slaughter was 484,000 head, down 5,000 on the week and up about 3,000 on the year.