Market News

Live cattle lower waiting on direct business

At the Chicago Mercantile Exchange, live cattle were lower waiting on direct business, feeders were mostly higher on the lower move in corn.  August live cattle closed $.80 lower at $237.62 and October live cattle closed $.47 lower at $233.55.  August feeder cattle closed $1.40 higher at $362.05 and September feeder cattle closed $1.25 higher at $358.65. 

It was another quiet day for direct cash cattle trade activity.  Bids remain elusive.  Some asking prices were noted in Nebraska at $400 dressed.  Significant trade volume looks like it’s going to hold out until sometime Thursday or Friday. 

At the OKC West Livestock Auction in Oklahoma, feeder steers were $5 to $15 lower.  Feeder heifers were $10 to $15 lower.  Steer and heifer calves were $10 to $20 lower.  The USDA says quality for feeder steers and heifers was plain to average and quality for calves was plain.  There were a few drafts that did sell at steady money.  Receipts were down from the most recent sale, but up on the year.   Feeder supply included 60 percent steers with 77 percent of the offering weighing more than 600 pounds.  Medium and Large 1 feeder steers 608 to 642 pounds brought $420 to $435 and feeder steers 922 to 936 pounds brought $329 to $338.50.  Medium and Large 1 feeder heifers 658 to 689 pounds brought $355 to $367.50 and feeder heifers 800 to 834 pounds brought $326 to $338. 

Boxed beef was sharply lower with light demand for solid offerings.  Choice was $4.57 lower at $381.20 and Select was $2.80 lower at $363.09.  The Choice/Select spread was $18.11. Estimated cattle slaughter was 108,000 head, down 2,000 on the week and down more than 10,000 on the year. 

Lean hog futures were higher, supported by the week’s wholesale business.  August lean hogs closed $2.72 higher at $99.65 and October lean hogs closed $3.87 higher at $85.52.   

Cash hogs closed higher with a solid negotiated run. The cash hog market has had a pretty solid week of business as processors have been more aggressive in their procurement efforts.  The industry continues to monitor demand, both on the global market and domestically.  While there have been some bright spots when it comes to global demand for US pork, there are concerns about long-term strength.  Summer grilling season is in full swing and with pork’s competitive price in the retail space, it could help boost domestic demand. Barrows and gilts at the National Daily Direct were up $1.37 with a base range of $86 to $99 and a weighted average of $97.79; the Iowa/Minnesota closed $1.99 higher with a weighted average $98.56; the Western Corn Belt closed $1.55 higher at $98.19.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

At Illinois, slaughter sows were steady with moderate demand for heavy offerings at $41 to $52.  Barrows and gilts were steady with moderate demand for moderate offerings at $57 to $67.  Boars ranged from $25 to $30 and $15 to $20.  

Pork values closed firm, up $.25 at $98.16.  Hams and bellies were both up.  Picnics, ribs, loins, and butts were all lower. Estimated hog slaughter was 483,000 head, up 9,000 on the week and up more than 15,000 on the year.