Market News

Feeder cattle futures sharply higher

 

Chicago Mercantile Exchange live cattle futures were higher, watching the direct cash cattle markets. There was also some spillover from the strength in feeders. Gains were limited by the lower midday boxed beef. June was $1.02 higher at $153.50 and August was up $1.32 at $152.75.

Feeder cattle futures were sharply higher on the tight near term supply of market ready numbers. August was $3.52 higher at $224.95 and September was up $3.07 at $223.25.

Thursday, direct cattle markets were quiet, with packer inquiry improving as the day went on. However, asking prices stayed where they were, at $163 to $164 in the South and $258 to $260 in the North. Bids were reported at $156 to $158 Live in Kansas and $248 to $252 Dressed in Nebraska and Iowa. DTN did report 250 head trading at $250 Dressed in Iowa.

At the Mitchell Livestock Auction in South Dakota, the best test reported was on heavier weight feeder steers and heifers, with prices steady to sharply higher. Demand was very good and the market was active. The USDA noted an attractive offering of long strings of backgrounded cattle, with many selling in load lots. Receipts of 1,995 head were down sharply on the week and the year. 800 to 850 pound feeder steers sold at $217.75 to $220.50 and 925 to 950 pounders brought $200 to $207.50. 800 to 830 pound feeder heifers ranged from $203.50 to $212 and 860 to 895 pound heifers sold at $194.75 to $202.50.

Boxed beef was sharply lower on light to moderate demand and moderate offerings. Choice was down $1.86 at $259.25 and Select was $3.14 lower at $246.74. The estimated cattle slaughter of 116,000 head was up 3,000 from a week ago, but down 3,000 from a year ago.

Lean hog futures were higher on spread trade and short covering, in addition to spillover from cattle. There was occasional pressure from the midday drop in the wholesale market, but overall, it was a pretty solid session for hogs. June was $.82 higher at $84.60 and July was up $1.30 at $84.62.

Cash hog trade was steady to higher. So far this week, morning activity has been a little thin, with packer demand improving as the day goes on. Saturday’s slaughter is expected to be around 150,000 head. The weekly slaughter is ahead of last year’s pace and tonnage is above projections, so the U.S. herd appears to be expanding faster than expected.

National Direct barrows and gilts were up $.76 at $70 to $82 for an average of $79.54, the Eastern Cornbelt was $.23 higher at $75.21 to $81 with an average of $77.78, and the Western Cornbelt was up $1.48 at $70 to $82 for an average of $81.39. The Iowa/Southern Minnesota market was not reported due to confidentiality. Butcher hogs at the Midwest cash markets were steady at $53 to $55. The Missouri Direct base carcass meat price was steady at $72 to $74 on light to moderate supply and demand. Missouri sows were steady at $20 to $30.

The pork cutout was down $2.63 at $84.63. Primals were all weak to sharply lower. The estimated hog slaughter of 413,000 head was down 12,000 on the week and 6,000 on the year.