Market News

Live cattle mostly higher ahead of direct business

At the Chicago Mercantile Exchange, live cattle were mostly higher, and feeder cattle were higher ahead of widespread direct business.  August live cattle closed $1.05 lower at $218.20 and October live cattle closed $.22 lower at $215.65.  August feeder cattle closed $1.50 higher at $313.15 and September feeder cattle closed $2.05 higher at $312.75. 

There was a light round of direct cattle business reported in Texas on Tuesday.  Live deals were marked at $235, $5 higher than the previous week’s weighted averages.  A few bids also surfaced in Kansas at $235 live.  Look for additional trade to take place over the balance of the week.

At the Callaway Livestock Market in Missouri, steer calves 400 to 500 pounds were steady to firm with spots of $7 higher, steers 500 to 700 pounds were steady to firm with instances of $10 higher on 550-to-600-pound steers, pot loads of yearling steers 750 to 825 pounds were $10 to $12 higher on comparable weights.  Heifer calves 400 to 500 pounds were steady to $5 lower.  Heifers 500 to 600 pounds were $5 to $10 lower, and 6-weight heifers were steady.  The USDA says demand was good on a moderate supply.  Overall, it was a good quality offering of calves and yearlings, and the market remains very active.  Receipts were down on the week, but up on the year.  Feeder supply included 69 percent steers and 50 percent of the offering weighed more than 600 pounds.  Medium and Large 1 feeder steers 653 to 685 pounds brought $330.50 to $356.50 and feeder steers 752 to 793 pounds brought $320.25 to $345.  Medium and Large 1 feeder heifers 555 to 598 pounds brought $331 to $359.50 and feeder heifers 606 to 636 pounds brought $321.50 to $339.50.   

Boxed beef closed sharply higher and higher with strong demand for moderate offerings.  Choice closed $4.51 higher at $371.76 and Select closed $.91 higher at $359.84.  The Choice/Select spread was $11.92. Estimated cattle slaughter was 119,000 head – down 2,000 on the week and down more than 4,000 on the year.

Lean hog futures closed mostly lower on spread trade with ongoing concerns about demand. July lean hogs closed $1.00 higher at $108.20 and August lean hogs closed $.30 lower at $109.80.

Cash hogs closed sharply higher with a big negotiated run.  Processors got more aggressive in their procurements and bid up to move the needed numbers.  Demand continues to play a role in the market.  Global demand, overall, has been strong. Which has helped provide some price support.  But China remains a wildcard.  The industry is closely monitoring the current round of trade talks between the two countries. Barrows and gilts at the National Daily Direct were $2.62 higher with a base range of $100 to $109.50 and a weighted average of $105.84; the Iowa/Minnesota closed $1.85 higher with a weighted average of $106.18; the Western Corn Belt closed $1.50 higher with a weighted average of $106.21.  Prices at the Eastern Corn Belt were not reported due to confidentiality.

Butcher hog prices at the Midwest cash markets were steady at $72. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $49 to $61.  Barrows and gilts were $3 higher with moderate demand for moderate offerings at $60 to $70.  Boars ranged from $25 to $35 and $18 to $25. 

Pork values closed higher, up $.59 at $110.88.  Bellies were sharply higher.  Picnics, ribs, and butts were also higher.  Loins and hams were lower. Estimated hog slaughter was 480,000 head, down 3,000 on the week and up about 500 on the year.