Market News

Cattle futures mostly higher, despite bearish business

Chicago Mercantile Exchange live cattle futures were mostly higher in low trade volume on short covering and spillover from the strength in hogs. June, which expires Friday, was down $.05 at $120.20 and August was up $.87 at $116.50.

Feeder cattle futures were also higher in low trade volume, following hogs. August was $.77 higher at $147.17 and September was up $.80 at $147.20.

Direct cash cattle business was light to moderate by Thursday afternoon at $119 on the live basis in the south, down $3 on the week, and $119 to $120 live in the north, $1 to $2 lower. Dressed business in Nebraska ranged from $189 to $190, $4 to $5 under last week’s weighted average in Nebraska. It remains to be seen how much, if any, trade is left to be done this week.

Boxed beef closed sharply lower on light to moderate demand and heavy offerings, continuing the recent trend. Choice was down $2.88 at $226.55 and Select was $2.51 lower at $210.16. The estimated cattle slaughter of 117,000 head was up 1,000 on the week and 4,000 on the year.

At the Huss Platte Valley feeder cattle auction, compared to last week, there was no comparison, as there was no sale. The USDA says market activity was good, with solid demand from the in-person crowd and the interest. 83% of the run was steers and 98% of the total offering weighed more than 600 pounds. 830 to 840 pound feeder steers ranged from $150.50 to $154 and 900 to 942 pounders brought $147.75 to $152.35. 620 to 690 pound heifers were reported at $149 to $159.50 and 715 to 770 pound heifers sold at $143 to $148.50.

Lean hog futures were higher, with nearby months up sharply, on expectations for good cash demand ahead of Independence Day week and position squaring prior to the USDA’s quarterly hogs and pigs report. On the surface, those numbers look bearish, but they may already be factored in. Most contracts are carrying a discount to the cash index. July was up $1.55 at $89.47 and August was $1.27 higher at $80.75.

Cash hog business closed mostly steady to higher with the trade keeping an eye on the availability of market ready numbers. Still, there are plenty of hogs available right now, so some of this was likely getting current for early next week as well. Thursday’s lower trade for pork could be a sign that demand has peaked for now, with most of the retail orders for Independence Day locked in. Either way, there’s currently no shortage of pork at the wholesale level.

Iowa/Southern Minnesota direct barrows and gilts closed $2.11 higher at $81 to $89.50 for a weighted average of $88.44, the Western Cornbelt was up $2.05 at $81 to $89.50 with an average of $88.27, and national direct business was $1.57 higher at $81 to $89.50 for an average of $87.12. For the first time in a while, the Eastern Cornbelt had a reportable trend: up $.44 with a range of $81 to $89.50 and an average of $87.12. Butcher hogs at the Midwest cash markets were steady at $55 to $66. Missouri direct butchers were $1 lower to $3 higher at $80 to $81 on light to moderate supply and demand. Sows were $2 lower to $7 higher at $38 to $55. Illinois direct sows were steady at $48 to $60 with very good demand for moderate to heavy offerings. Barrows and gilts were steady at $59 to $62 on good demand for moderate offerings. Boars ranged from $10 to $40.

Pork closed $1.22 lower at $102.32. Bellies were up $1.96, but all the other primals were weak to sharply lower, including an $8.34 drop in ribs. The estimated hog slaughter was 437,000 head, 5,000 more than a week ago and 12,000 higher than a year ago.