Market News

Cattle futures sharply lower at midweek

At the Chicago Mercantile Exchange, live and feeder cattle were sharply lower ahead of the week’s direct business.  June live cattle closed $1.12 lower at $173.95 and August lives closed $2.00 lower at $171.10.  August feeders closed $3.75 lower at $251.71 and September feeders closed $3.87 lower at $252.60.

Direct cash cattle trade was quiet again Wednesday.  Bids have been elusive.  Asking prices in the South were at $185 to $186 live, while the North remained quiet.  Look for business to develop sometime Thursday or Friday.

At the Kingsville Livestock Auction in Missouri, steers and heifers were steady.  The USDA says demand was good for a moderate to heavy supply that included nearly 20 loads of yearlings.  There was a good quality run of calves that were on offer, most were vaccinated and un-weaned and were met with very little discount.  Receipts were up on the week and down on the year.  Feeder supply included 59% heifers and 59% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 451 to 490 pounds brought $339 to $364 and feeder steers 958 pounds brought $228.85.  Medium and Large 1 feeder heifers 712 pounds brought $250.25. 

Boxed beef closed lower on light demand for heavy offerings.  Choice was $.83 lower at $293.54 and Select closed $1.88 lower at $288.07.  The Choice/Select spread is down to $5.47. Estimated cattle slaughter was 123,000 head – down 2,000 on the week and up about 1,000 on the year.

Lean hog futures ended the day sharply lower, pressured by long-term demand uncertainty and technical selling.  June lean hogs closed $2.05 lower at $100.42 and July lean hogs closed $1.80 lower at $103.62. 

Cash hogs closed lower with a big negotiated run.  The uptick in slaughter pace has packers working to move needed numbers.  Demand for US pork on the global market has been strong and remains a bright spot for the industry.  Domestic demand has been showing some strength.  Both provide overall support to prices.  The industry continues to monitor total production, specifically hog weights, which were up slightly on the week and up more than a pound from year-ago levels. Barrows and gilts at the National Daily Direct closed $.01 lower with a base range of $83 to $95 and a weighted average of $92.02; the Iowa/Minnesota closed $.72 lower with a weighted average of $92.40; the Western Corn Belt closed $.40 lower with a weighted average of $92.43; no comparison at the Eastern Corn Belt but a weighted average of $90.61.

Butcher hog prices at the Midwest cash markets are steady in Dorchester, Wisconsin at $50 and steady in Red Oak, Iowa at $59. At Illinois, slaughter sow prices were $3 lower with moderate demand for moderate offerings at $39 to $51.  Barrows and gilts were steady with moderate demand for moderate offerings at $51 to $61.  Boars ranged from $18 to $28 and $8 to $15. 

Pork values closed lower – down $.77 at $97.99.  Bellies were sharply lower.  Ribs and picnics were lower.  Hams were about steady.  Butts and loins were higher. Estimated hog slaughter was 480,000 head – down 3,000 on the week and up more than 12,000 on the year.