Market News

Cattle futures higher ahead of cash trade

At the Chicago Mercantile Exchange, live and feeder cattle were higher ahead of widespread direct business with support from higher boxed beef prices.  October live cattle closed $.95 higher at $108.90 and December live cattle closed $1.47 higher at $113.12.  October feeder cattle closed $2 higher at $142.92 and November feeder cattle closed $2.67 higher at $143.77. 

A quiet Tuesday for direct cash cattle trade activity.  Bids have yet to surface.  So far, we’ve only seen asking prices at $108 live in the South, while the North remains quiet.  It’s likely significant trade volume will be delayed until at least midweek or later.  

At the Tri-State Livestock Auction in Nebraska, compared to last week, steers and heifers under 650 pounds were steady to $2 lower.  There wasn’t enough of a comparable offering over 650 pounds.  The USDA says demand was good on a good selection offered.  Receipts were up on the week and the year.  Feeder supply included 55 percent steers and 28 percent of the offering was over 600 pounds.  Medium and Large 1 feeder steers 515 to 546 pounds brought $163.50 to $171.50 and feeder steers 602 to 622 pounds brought $150 to $161.75.  Medium and Large 1 feeder heifers 400 to 435 pounds brought $153 to $168.25 and feeder heifers 501 to 541 pounds brought $143.50 to $155.25. 

Boxed beef closed mixed on light to moderate demand for moderate offerings.  Choice closed $.56 lower at $217.16 and Select closed $.57 higher at $206.99.  The Choice/Select spread is $10.17.  Estimated cattle slaughter is 120,000 head – down 1,000 on the week and up 2,000 on the year. 

Lean hog futures closed lower, pressured by the cash trade with concerns about the long-term supply and demand situation.  October lean hogs closed $.32 lower at $72.37 and December lean hogs closed $2.05 lower at $61.97. 

Cash hogs closed steady to firm with a moderate negotiated run.  The industry remains optimistic demand for US pork will continue to rise. That helps provide some price support even as supplies of market-ready hogs are more than ample.  Packers continue to push daily slaughter totals higher, hopefully making a dent in the backlog in the production system.  While that keeps the supply chain moving, it also adds more pork to an already saturated market. Barrows and gilts at the National Daily Direct closed $.02 lower with a base range of $60 to $66.75 for a weighted average of $64.08; the Iowa/Minnesota Closed $.56 higher for a weighted average of $64.95; the Western Corn Belt is $.56 higher for a weighted average of $64.95.  The Eastern Corn Belt was not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $40.  At Illinois, slaughter sow prices were steady with good demand for moderate offerings at $14 to $25.  Barrow and gilt prices were weak with good demand for moderate to heavy offerings at $40 to $45.  Boars ranged from $1 to $3. 

Pork values closed lower – down $1.64 at $91.75.  Hams and bellies closed sharply lower.  Picnics, loins, butts, and ribs were higher. Estimated hog slaughter is 485,000 head – even on the week and down 4,000 on the year.