Market News

Live cattle futures lower to start the week

At the Chicago Mercantile Exchange, live cattle were lower, and feeders were mostly lower ahead of the week’s direct business.  April live cattle closed $1.05 lower at $205.90 and June lives closed $.62 lower at $202.15.  April feeder cattle closed $.27 higher at $285.25 and May feeder cattle closed $.25 lower at $284.85. 

Direct cash cattle trade activity was quiet, typical for a Monday.  Bids and asking prices didn’t surface.  Showlists this week are lower in all three major feeding areas. If business follows the trend of recent weeks, look for significant trade volume to hold out until sometime on Friday.

At mid-session, at the Oklahoma National Stockyards, feeder steers and steer calves were $4 to $8 higher, steers 600 to 700 pounds were $15 higher.  Feeder heifers were $3 to $10 higher and heifer calves were $5 to $12 higher.  The USDA says demand was very good for all classes as the price gap between the best animals and commodity type cattle has narrowed.  Better quality cattle were strong.  Quality was average overall, with a few attractive.  Receipts were down on the week and about steady on the year.  Feeder supply included 50% steers and 75% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 657 to 690 pounds brought $312.50 to $343 and feeder steers 751 to 790 pounds brought $288 to $313.  Medium and Large 1 feeder heifers 603 to 649 pounds brought $307 to $315.50 and feeder heifers 704 to 749 pounds brought $261 to $293. 

Boxed beef closed higher and sharply higher with very good demand on fairly light offerings. Choice was $1.65 higher at $327.10 and Select closed $3.96 higher at $313.58.  The Choice/Select spread is $13.52.  Estimated cattle slaughter was 119,000 head – up 5,000 on the week and up more than 2,000 on the year.

Lean hog futures were pressured by ongoing uncertainties surrounding export and domestic demand. April lean hogs closed $.42 lower at $85.70 and May lean hogs closed $1.10 lower at $88.55.

Cash hogs closed higher with a solid negotiated run. Processors came out aggressive in their procurement efforts and were bidding up to move needed numbers.  With back-to-back weeks of marketing year lows for export sales, there is some uncertainty surrounding the continued strength in demand for U.S. pork on the global market.  Relative to domestic demand, pork remains a more competitively priced protein, and that could provide a much-needed boost.  The industry is also looking ahead to this week’s Quarterly Hogs and Pigs report. Barrows and gilts at the National Daily Direct closed $1.89 higher with a base range of $86 to $92 and a weighted average of $90.29; the Iowa/Minnesota closed $2.26 higher with a weighted average of $90.46; the Western Corn Belt closed $2.14 higher with a weighted average of $90.30.  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 $60. At Illinois, slaughter sow prices were $2 lower with moderate demand for light offerings at $55 to $67.  Barrows and gilts were steady with moderate demand for moderate offerings at $54 to $64.  Boars ranged from $20 to $30 and $15 to $25. 

Pork values closed higher – up $.51 at $97.37.  Ribs and picnics were sharply higher.  Bellies, butts, and loins were up, while hams were lower. Estimated hog slaughter was 488,000 head – up 1,000 on the week and up about 5,000 on the year.