Market News

Live cattle, hog futures mixed heading into Friday

At the Chicago Mercantile Exchange, live cattle were mixed, feeders were lower, watching the rest of the week’s direct business develop. June live cattle closed $1.25 higher at $209.65 and August live cattle closed $.60 higher at $204.65.  August feeder cattle closed $.57 lower at $294.45 and September feeder cattle closed $.95 higher at $292.85. 

Another light round of direct cash cattle trade took place on Thursday.  For the week, dressed deals were marked at $340 to $352, mostly $350 dressed in the North, $8 to $10 higher than the previous week’s weighted average basis in Nebraska.  Southern live deals were marked at mostly $218, $5 to $6 higher than the prior week’s weighted averages. It is very likely this week’s business will break the weighted average record set last week.  Some cleanup trade is expected to take place on Friday. 

At the Hub City Livestock Auction in South Dakota, steers 850 to 899 pounds were mostly steady and steers 900 to 999 pounds were unevenly steady.  Heifers 700 to 849 pounds were mostly steady.  The USDA says demand was good to very good.  The majority of the day’s offering was loads and strings of backgrounded cattle and a few consignments of replacement quality heifers.  Flesh varied and most cattle were in moderate to moderate plus flesh.  Quality varied, from plain to attractive.  The market was active, both in-house and online. Receipts were down on the week and the year. Feeder supply included 58 percent steers and 91 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 651 to 692 pounds brought $329 to $350 and feeder steers 950 to 994 pounds brought $270.50 to $280.50.  Medium and Large 1 feeder heifers 706 to 740 pounds brought $287 to $307 and feeder heifers 855 to 888 pounds brought $273 to $288.

Boxed beef was mixed on light and solid demand for moderate offerings.  Choice was $2.14 lower at $343.17 and Select closed $2.26 higher at $324.28.  The Choice/Select spread is $18.89.   Estimated cattle slaughter was 120,000 head – up 4,000 on the week and about steady on the year.

Lean hog futures closed mixed on spread trade, with ongoing concerns about demand. June lean hogs closed $.10 lower at $98.17 and July lean hogs closed $.32 higher at $98.92.

Cash hogs closed lower with a moderate negotiated run.  Processors were able to move needed number without having to get aggressive in their procurement efforts. Demand for U.S. pork, outside of China, remains relatively strong.  This week’s export sales were exponentially higher from last week and up 34 percent from the prior 4-week average, but China remains absent from the purchaser list.   The industry remains optimistic domestic demand will see a boost, especially with summer grilling season just around the corner.  But, that remains to be seen. Barrows and gilts at the National Daily Direct closed $.61 lower with a base range of $86 to $95 and a weighted average of $92.39; the Iowa/Minnesota closed $.42 lower with a weighted average of $92.93; the Western Corn Belt closed $.48 lower with a weighted average of $92.97.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are $3 higher at $66.  

Pork values closed weak – down $.15 at $96.46.  Ribs were sharply lower – down nearly $10.  Butts and loins were lower.  Picnics, bellies, and hams were all higher. Estimated hog slaughter was 483,000 head – up 8,000 on the week and down about 1,000 on the year.