Market News

Live cattle pressured ahead of direct business

At the Chicago Mercantile Exchange, live cattle were mostly lower, and feeder cattle were mostly higher ahead of the week’s direct business.  April lives closed $1.02 lower at $199.55 and June live cattle closed $.97 lower at $196.25.  April feeder cattle closed $.22 lower at $277.70 and May feeders closed $.40 higher at $278.95. 

Direct cash cattle trade activity was unsurprisingly quiet on Tuesday.  Bids didn’t surface.  Asking prices were floated in the South around $202-plus live, but did not surface out of the North.  Significant trade volume will likely be delayed until midweek or later.

At the Tri-State Livestock Auction in Nebraska, steers over 600 pounds were $2 to $16 higher and heifers were $4 to $15 higher.  The USDA says demand was good on all offerings.  Receipts were down on the week, but up on the year. Feeder supply included 62% steers and 67% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 602 to 644 pounds brought $340 to $361 and feeder steers 953 pounds brought $265.25.  Medium and Large 1 feeder heifers 608 to 646 pounds brought $286 to $307 and feeder heifers 760 pounds brought $271.   

Boxed beef closed mixed with mixed demand on solid offerings. Choice was $3.62 higher at $321.20 and Select closed $.09 lower at $306.86.  The Choice/Select spread is $14.34. Estimated cattle slaughter was 124,000 – up 1,000 on the week and up about 2,000 on the year.

Lean hog futures ended the day mixed, mostly lower on widespread concerns about domestic and export demand.  April lean hogs closed $1.75 lower at $86.55 and May lean hogs closed $1.27 lower at $90.20. 

Cash hogs closed solidly higher with decent negotiated numbers. Processors have started the week more aggressive in their procurement efforts, and prices reflect that.  Demand for U.S. pork on the global market has been strong, which is helping provide price support.  But the back-and-forth when it comes to tariff and trade war threats can create additional uncertainty and volatility in the markets.  Domestic demand has been inconsistent at best, which does add constraints to any potential upside in prices. Barrows and gilts at the National Daily Direct were up $2.08 with a base range of $85 to $93.50 with a weighted average of $90.98; the Iowa/Minnesota closed $2.00 higher with a weighted average of $90.98; the Western Corn Belt closed $2.05 higher with a weighted average of $90.98.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at midday at $60. 

Pork values closed lower – down $.64 at $97.57. Bellies, loins, butts, and picnics were all lower.  Ribs and hams were up. Estimated hog slaughter was 489,000 head – up 8,000 on the week and up nearly 7,000 on the year.