Market News

Quiet start to the week for direct cash cattle business

At the Chicago Mercantile Exchange, live and feeder cattle were higher ahead of the week’s direct business. 

It was a quiet Monday for direct cash cattle trade activity.  Showlists this week are mixed.  Lower in Kansas and Texas, but higher in Nebraska and Colorado.  Bids and asking prices have yet to surface.  It will be interesting to see where business starts out this week after last week’s big drop.  Significant trade volume will likely be delayed until sometime Thursday or Friday.

At midsession, at the Oklahoma National Stockyards, feeder steers and heifers continue to be lightly tested.  There were a few feeder steers that were $5 to $10 lower.  Some feeder heifers were $8 to $12 lower.  Lighter weight, long weaned calves however, brought $10 to $15 higher.  Heavier weight and un-weaned or short-weaned calves were $4 to $8 lower.  The USDA says demand was good for lightweight steer calves, moderate for others.  Quality was mostly average to attractive.  Receipts were down on the week and the year.  Feeder supply included 57% steers and 39% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 611 to 642 pounds brought $245 to $260 and feeder steers 655 to 698 pounds brought $224 to $243.  Medium and Large 1 feeder heifers 505 to 536 pounds brought $225 to $246 and feeder heifers 551 to 560 pounds brought $224 to $243. 

Boxed beef was mixed at the close. Choice was $2.61 lower at $297.85 and Select was up $1.82 at $269.24. The Choice/Select spread was $28.61.

Estimated cattle slaughter was 125,000 head – up 3,000 on the week and down 2,000 on the year.

Lean hog futures were higher on short covering. 

Cash hogs closed steady to higher. Ample supplies of market-ready hogs give processors more leverage, which means they’re not having to get aggressive in their procurement efforts and bid up.  While demand for US pork has been relatively strong on the global market, there are concerns it can hold long term.  Domestic demand has also struggled recently creating even more pressure on prices. 

Barrows and gilts at the National Daily Direct at $.14 higher with a base range of $61.50 to $67 and weighted average price of $66.09. While some negotiated prices for Monday weren’t available, the five-day rolling average at the Iowa/Minnesota is $67.71, the Western Corn Belt is $67.11, and the Eastern Corn Belt is $69.71.

Butcher hog prices at the Midwest cash markets made a big jump Monday.  Prices in Dorchester, Wisconsin are $5 higher at $60. At Illinois, slaughter sow prices were $2 higher with moderate demand for moderate offerings at $43 to $56.  Barrows and gilts were steady with moderate demand for moderate offerings at $40 to $50.  Boars ranged from $18 to $21 and $5 to $10. 

Pork values closed lower – down $2.65 at $86.77. Bellies were higher. Hams, ribs, picnics, butts and loins were lower.

Estimated hog slaughter was 488,000 head – up 1,000 on the week and up 2,000 on the year.