Market News

Live cattle lower to start the week

At the Chicago Mercantile Exchange, live cattle were lower ahead of the week’s direct business.  Feeders were mixed, mostly higher with the lower move in corn. October live cattle were down $0.42 at $177.22 December lives were down $0.15 at $178.35. October feeder cattle were down $0.12 at $239 and November feeders were up $0.37 at $235.57.

Direct cash cattle trade activity was quiet to start the week, typical for a Monday. New showlists are mixed, higher in Texas, but lower in Kansas and Nebraska/Colorado.  Bids and asking prices weren’t established.  Significant trade volume will likely be delayed until the latter half of the week.

At the Oklahoma National Stockyards, steers and heifers were $3 to $8 higher.  The USDA says demand was good and quality was average with a few fancy drafts. Receipts were down on the week and the year.  Feeder supply included 54% steers and 61% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 701 to 749 pounds brought $250 to $258 and feeder steers 852 to 877 pounds brought $230.25 to $234.25.  Medium and Large 1 feeder heifers 603 to 648 pounds brought $241 to $250.50 and feeder heifers 703 to 731 pounds brought $234 to $241. 

Boxed beef closed lower with light demand for moderate offerings.  Choice was $.34 lower at $304.57 and Select closed $2.03 lower at $292.14.  The Choice/Select spread is $12.43.   Estimated cattle slaughter was 121,000 head – up 7,000 on the week and about even on the year.

Lean hog futures ended the day mostly higher on demand optimism with support from higher pork values during the session. October lean hogs were up $1.47 at $79.92 and December lean hogs were up $0.87 at $72.17.

Cash hogs closed higher with a moderate negotiated run. Processors got more aggressive in their procurement efforts and bid up to move needed numbers. Demand for U.S. pork on the global market has continued to be a bright spot, but domestic demand has been sluggish and that’s a concern.  Supplies of market-ready hogs are ample and the industry continues to monitor hog weights. Barrows and gilts at the National Daily Direct closed $.96 higher with a base range of $75 to $79 and a weighted average of $76.96; the Iowa/Minnesota closed $1.13 higher with a weighted average of $77.20, the Western Corn Belt closed $1.10 higher with a weighted average of $77.14.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $60. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $53 to $65.  Barrows and gilts were steady with moderate demand for moderate offerings at $45 to $55.  Boars ranged from $18 to $28 and $8 to $15. 

Pork values closed firm – up $.32 at $94.22.  Ribs were sharply higher.  Picnics, loins, butts, and bellies were all higher.  Hams were sharply lower. Estimated hog slaughter was 486,000 head – even on the week and down about 1,000 on the year.