Market News

Cattle futures sharply higher to start the week

At the Chicago Mercantile Exchange, live and feeder cattle were sharply higher on oversold signals ahead of the week’s direct business.  Feeders had additional support from the lower move in corn. June live cattle closed $2.35 higher at $173.82 and August live cattle closed $2.37 higher at $171.12.  May feeder cattle closed $3.80 higher at $238 and August feeder cattle closed $4.27 at $249.77. 

Direct cash cattle trade was quiet Monday.  Bids and asking prices didn’t surface.  Showlists this week are higher across all major feeding areas.  Significant trade volume will likely be delayed until the latter half of the week.

At mid-session, at the Oklahoma National Stockyards in Oklahoma, steers over 700 pounds and heifers under 650 pounds were $3 to $7 lower.  The UDSA says quality was average, and demand was moderate. Receipts were up on the week and down on the year.  Feeder supply included 59% steers and 77% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 658 to 692 pounds brought $250 to $288 and feeder steers 852 to 887 pounds brought $220 to $241.  Medium and Large 1 feeder heifers 611 to 643 pounds brought $237 to $258 and feeder heifers 701 to 749 pounds brought $215 to $241. 

Boxed beef closed mixed, with moderate and light demand for moderate offerings.  Choice was $.31 higher at $300.88 and Select closed $4.20 lower at $291.34.  The Choice/Select spread is $9.54. Estimated cattle slaughter was 121,000 head, even on the week and down more than 1,000 on the year.

Lean hog futures ended the day mixed on spread trade with cash lower and pork values sharply higher at midday. June lean hogs closed $.37 higher at $102.45 and July lean hogs closed $.50 lower at $103.75. 

Cash hogs closed lower with a very light negotiated run. Processors just aren’t in any hurry to get business going this week, which has been the trend recently.  Demand remains a bright spot for US pork, both on the global market and domestically as summer grilling season is right around the corner.  The industry continues to monitor the availability of market-ready hogs and hog weights, which were up again last week. Barrows and gilts at the National Daily Direct closed $.89 lower with a base range of $84 to $87 and a weighted average of $85.71.  Prices at the Regional Direct Markets were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are $2 lower at $52. 

Pork values closed sharply higher – up $2.40 at $103.60.  Bellies jumped more than $19 Monday. Ribs and picnics were higher.  Loins, hams, and butts were all lower. Estimated hog slaughter was 488,000 head – up 22,000 on the week and up about 22,000 on the year.