Market News

A solid start to the week for cattle futures

At the Chicago Mercantile Exchange, live cattle closed mostly higher and feeders were up, watching corn and the direct markets.  October live cattle closed $.22 higher at $145.72 and December lives closed $.07 lower at $150.90.  October feeders closed $1.05 higher at $182.30 and November feeders closed $.77 higher at $183.52. 

It was a quiet Monday for direct cash cattle trade activity.  Bids and asking prices have been slow to surface.  Showlists this week are mixed – somewhat higher in Texas, but lower in Kansas and Nebraska/Colorado.  Look for significant trade volume to pick up as the week progresses. 

At mid-session, at the Oklahoma National Stockyards, compared to last week feeder steers were mostly $3 to $4 lower with instances of $7 lower.  Feeder heifers were steady to $2 lower.  The USDA says demand was moderate for feeder cattle.  Steer calves were $2 to $6 higher and heifer calves were steady to $3 lower.  Demand was moderate to good for calves.  Weather has been warm and dry in many parts of the state.  Receipts are down on the week and up on the year.  Feeder supply included 53% steers and 38% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 504 to 549 pounds brought $185 to $202 and feeder steers 651 to 687 pounds brought $170 to $184.50.  Medium and Large 1 feeder heifers 503 to 548 pounds brought $165 to $183 and feeder heifers 551 to 588 pounds brought $164 to $178.

Boxed beef closed mixed with light demand for moderate offerings.  Choice closed $.05 higher at $252.45 and Select is $.76 lower at $225.89.  The Choice/Select spread is $26.56. Estimated cattle slaughter 127,000 – up 2,000 on the week and up 8,000 on the year.

Lean hog futures ended the day mixed, mostly higher with monthly cold storage and livestock slaughter numbers out Thursday.  October lean hogs closed $.42 lower at $96.47 and December lean hogs closed $.17 higher at $98.15. 

Cash hogs closed mixed with a moderate negotiated run.  Processors haven’t been very aggressive in their procurement efforts and have been able to move their desired numbers without having to aggressively bid up.  The industry continues to monitor the availability of market-ready hogs and is already looking ahead to the upcoming Quarterly Hogs and Pigs report.  Demand for US pork on the global market and domestically has been strong, helping provide price support.  But, there are long-term demand concerns that creep in and put pressure on the market. Barrows and gilts at the National Daily Direct closed $1.30 higher with a base range of $82 to $100 with a weighted average of $92.16; the Iowa/Minnesota closed $1.27 lower with a weighted average of $97.87; the Western Corn Belt closed $1.10 lower with a weighted average of $97.72; the Eastern Corn Belt had no comparison but a weighted average of $90.12. 

Butcher hog prices at the Midwest cash markets are steady at $70. At Illinois, slaughter sow prices were steady with moderate demand for moderate offerings at $58 to $70.  Barrows and gilts were $2 lower with moderate demand for light to moderate offerings at $3 to $72.  Boars ranged from $39 to $41 and $9 to $19. 

Pork values closed higher – up $.54 at $106.39.  Picnics, loins, butts, and hams were higher.  Ribs and bellies were lower. Estimated hog slaughter 484,000 head – up 9,000 on the week and up 19,000 on the year.