Market News

Live cattle higher on oversold signals

At the Chicago Mercantile Exchange, live cattle futures were higher on a bounce, feeders were mixed on spread trade.  August live cattle closed $2.25 higher at $227.47 and October live cattle closed $3.40 higher at $222.17.  August feeder cattle closed $4.82 higher at $343.07 and September feeder cattle closed $5.30 higher at $337.22. 

Direct cash cattle trade was relatively quiet following the light trade on Monday.  Bids were floated in Kansas at $228 live and in Nebraska at $360 dressed.  Asking prices remain elusive.  So far this week, deals in Nebraska were marked at $360 dressed, that’s $5 lower than the prior week’s weighted averages.  Those were marked for delayed delivery.  There was also some light trade in Kansas at $228 live. 

At the Kingsville Livestock Auction in Missouri, steers were steady to $5 lower, heifer calves weighing less than 550 pounds were $10 to $20 lower and heifers weighing more than 550 pounds were mostly steady.  The USDA says demand was moderate for a light to moderate supply.  Receipts were up on the week and the year.  Feeder supply included 67 percent steers with 61 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 561 to 574 pounds brought $439 to $463 and feeder steers 668 to 681 pounds brought $389 to $400.  Medium and Large 1 feeder heifers 520 to 544 pounds brough $387.50 to $411 and feeder heifers 607 pounds brought $411. 

Boxed beef was mixed with solid and light demand for moderate offerings.  Choice was $2.97 higher at $365.86 and Select was $1.64 lower at $343.52.  The Choice/Select spread is $22.34. Estimated cattle slaughter was 106,000 head, up 3,000 on the week and down more than 10,000 on the year. 

Lean hog futures were higher, supported by strong pork values during the session. August lean hogs closed $.12 higher at $103.10 and October lean hogs closed $.47 higher at $88.27. 

Cash hogs closed higher with a solid negotiated run.  Processors continue to be more aggressive in their procurement efforts and are bidding up to move needed numbers.  Pork continues to be a competitively priced protein in the retail space which is supportive to domestic demand.  Globally, there have been some bright spots when it comes to demand, but there are long-term concerns that linger. Barrows and gilts at the National Daily Direct were $.31 higher with a base range of $02 to $102.50 with a weighted average of $101; the Iowa/Minnesota had no comparison but a weighted average of $101.88; the Western Corn Belt closed $.42 higher with a weighted average of $101.11; the Eastern Corn Belt had no comparison but a weighted average of $100.91. 

Butcher hog prices at the Midwest cash markets are steady at $65. At Illinois, slaughter sows were steady with moderate demand for moderate offerings at $36 to $48.  Barrows and gilts were steady with moderate demand for moderate offerings at $60 to $70.  Boars ranged from $22 to $32 and $10 to $13. 

Pork values closed lower, down $.54 at $103.91.  Ribs and hams were sharply lower.  Loins, butts, and picnics were down.  Bellies were sharply higher. Estimated hog slaughter was 470,000 head, even on the week and up more than 4,000 on the year.