Market News

Live cattle futures up ahead of widespread direct business

At the Chicago Mercantile Exchange, live cattle were up waiting on direct business, feeders were down on profit taking.  April live cattle closed $.17 higher at $238.52 and June live cattle closed $.10 higher at $235.27.  April feeder cattle closed $1.75 lower at $359 and May feeder cattle closed $1.47 lower at $355.52. 

Direct cash cattle trade activity was relatively quiet again Thursday.  There were a handful of deals reported in Iowa at $375 dressed and in Nebraska at $376 dressed.  That’s still not enough business to set a price trend for the week.  The rest of cattle country has been quiet, and significant trade looks like it is holding out until sometime on Friday.

At the OKC West Livestock Auction, feeder steers were steady to $6 lower.  Feeder heifers were $4 to $8 lower.  Steer and heifer calves were $10 to $20 lower.  The USDA says buyers were very cautious in their bidding and buying.  Receipts were down on the week and the year.  Feeder supply included 55 percent steers with 75 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 600 to 645 pounds brought $420 to $440 and feeder steers 804 to 845 pounds brought $353 to $376.  Medium and Large 1 feeder heifers 650 to 699 pounds brought $344 to $390 and feeder heifers 814 to 842 pounds brought $320 to $341. 

Boxed beef was mixed with light to moderate demand for moderate offerings.  Choice was $1.68 lower at $386.89 and Select was $.26 higher at $380.61.  The Choice/Select spread was $6.28.  Estimated cattle slaughter was 111,000 head, up 8,000 on the week and down more than 12,000 on the year. 

Lean hog futures closed lower on long-term demand concerns.  April lean hogs closed $1.40 lower at $95.67 and May lean hogs closed $1.20 lower at $100.52. 

Cash hogs had no comparison with a very light negotiated run. Demand remains a focal point for the market, especially with the ample supplies of pork available.  This week’s Export Sales report from the USDA showed a slight decline for pork from the previous week.  Overall, global demand for U.S. pork has been relatively strong, but there are long-term concerns that linger.  Pork remains a competitively priced protein in the retail space and that could continue to provide some much-needed support to the domestic market.  Processors weren’t very aggressive in their procurement efforts and didn’t bid up to move needed numbers. Barrows and gilts at the National Daily Direct had a base range of $85 to $92 with a weighted average of $89.74; the Iowa/Minnesota had a weighted average of $90.80; the Western Corn Belt had a weighted average of $89.73.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets in Dorchester, Wisconsin are steady at $70 and higher in Red Oak, Iowa at $56 to $60.   At Illinois, slaughter sow prices were steady with moderate demand for moderate to heavy offerings at $60 to $72.  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 closed higher, up $.60 at $99.22.  Hams, loins, and butts were all higher.  Bellies were about steady.  Picnics and ribs were lower.  Estimated hog slaughter was 491,000 head, down 2,000 on the week and up nearly 10,000 on the year.