Market News

Live cattle futures up, feeders lower to start the week

At the Chicago Mercantile Exchange, live cattle were up with boxed beef higher at midday, waiting on direct business to develop.  Feeder cattle were lower, pressured by the higher move in corn.  October live cattle closed $.02 higher at $183.77 and December lives closed $.32 higher at $184.80.  October feeder cattle closed $.87 lower at $246.20 and November feeders closed $.80 lower at $244.90. 

Direct cash cattle trade activity had a typically quiet start to the week.  Bids and asking prices didn’t surface.  Showlists this week are mixed, somewhat higher in Texas, higher in Nebraska/Colorado, but lower in Kansas. It looks like significant trade volume will likely be delayed until midweek or later. 

At mid-session at the Oklahoma National Stockyards, feeder steers and steer calves were $3 to $8 higher.  Feeder heifers and heifer calves were steady to $4 higher.  The USDA says demand was good and quality was much improved from the previous week and helped support the higher market.  Receipts were down on the week, but up on the year.  Feeder supply included 60% steers and 63% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 702 to 745 pounds brought $248 to $261 and feeder steers 751 to 790 pounds brought $240 to $258.  Medium and Large 1 feeder heifers 600 to 641 pounds brought $237.50 to $251 and feeder heifers 702 to 736 pounds brought $228 to $238. 

Boxed beef closed mixed with light to moderate demand for light offerings.  Choice was $.32 higher at $296.69 and Select closed $.29 lower at $282.08.  The Choice/Select spread is $14.61. Estimated cattle slaughter was 119,000, up 1,000 on the week and down about 4,000 on the year.

Lean hog futures ended the day mixed on spread trade, with pork values up and midday and cash business steady to weak.  October lean hogs closed $.20 higher at $82.25 and December lean hogs closed $.10 lower at $73.27. 

Cash hogs closed higher with a fairly light negotiated run.  Processors were more aggressive in their procurement efforts Monday afternoon and bid up to move needed numbers.  This could set the stage for the next couple of days of business.  Demand for U.S. pork on the global market remains strong, but there are long-term concerns about domestic demand.  Supplies of market-ready hogs are ample and hog weights are still running well above year-ago levels, ensuring there is plenty of pork available. Barrows and gilts at the National Daily Direct closed $1.57 higher with a base range of $73 to $77.75 and a weighted average of $76.68 and the Western Corn Belt closed $1.73 higher with a weighted average of $77.15.  Prices at the Iowa/Minnesota and the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $55. Pork values closed firm – up $.09 at $95.86. Bellies, ribs, and loins were all higher.  Hams, picnics, and butts were lower.

Estimated hog slaughter was 485,000 head – up 6,000 on the week and down more than 2,000 on the year.