Market News

Cattle futures higher ahead of direct business

At the Chicago Mercantile Exchange, live and feeder cattle ended the day higher waiting for direct business to develop.  August live cattle closed $.72 higher at $173.92 and October lives closed $.55 higher at $177.02.  August feeder cattle closed $1.40 higher at $240.45 and September feeders closed $1.32 higher at $243.40. 

It was a quiet Tuesday for direct cash cattle business.  Bids and asking prices did not surface.  There were a handful of sales reported in the North, but prices were not given and it was nowhere near enough business to establish a trend.  Significant trade volume will likely hold out until midweek or later. 

At the Callaway Livestock Center in Missouri, another large offering this week with steer calves 400 to 450 pounds steady to firm, 5-weight steers sold with a wide price range, but overall were unevenly steady.  Steers 600 to 650 pounds sold with a sharply higher undertone, steers 835 to 900 pounds were $5 to $10 higher and were met with very good demand, and steers over 900 pounds sold with a higher undertone.  Feeder heifers 400 to 500 pounds were steady with instances of $4 lower, heifers 500 to 700 pounds were mostly steady, but heifers 550 to 600 pounds were steady to $5 lower.  The USDA says demand was moderate to good on a heavy supply.  Good quality calves hit the highs of last week.  Receipts were down on the week, but up on the year.  Feeder supply included 60% steers and 39% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 553 to 583 pounds brought $299 to $301 for an average price of $299.59 and feeder steers 900 to 940 pounds brought $217.50 to $226.75 for an average price of $223.52.  Medium and Large 1 feeder heifers 500 to 542 pounds brought $246 to $267.25 for an average price of $259.84 and feeder heifers 601 to 639 pounds brought $227 to $243 for an average price of $234.61. 

Boxed beef closed mixed on light to moderate demand for moderate offerings.  Choice was $.56 higher at $337.99 and Select closed $.76 lower at $309.48.  The Choice/Select spread is $28.51.  Estimated cattle slaughter was 126,000 head – down 1,000 on the week and down 2,000 on the year.  Monday’s cattle slaughter has been revised to 122,000 head. 

Lean hog futures closed mixed adjusting spreads, as cash hog business was steady to lower and pork values higher during the session.  July lean hogs closed $1 lower at $90.60 and August lean hogs closed $.05 higher at $87.42. 

Cash hogs closed higher with a solid negotiated run.  Processors ramped up their procurement efforts Tuesday afternoon and bid up to move needed numbers.   Demand for US pork on the global market has been relatively strong.  There’s optimism the summer grilling season and pork being a value buy for grocery shoppers will help boost domestic demand.  Both are supportive of prices.  The industry continues to monitor the availably of market-ready hogs. Barrows and gilts at the National Daily Direct closed $.85 higher with a base range of $82 to $96.50 and a weighted average of $94.09; the Iowa/Minnesota closed $.71 higher with a weighted average of $94.38; the Western Corn Belt closed $.70 higher with a weighted average of $94.37.  Prices at the Eastern Corn Belt were not reported due to confidentiality.

Butcher hog prices at the Midwest cash markets are steady at $60. At Illinois, slaughter sow prices were $2 higher with moderate demand for moderate offerings at $14 to $23.  Barrows and gilts were steady with moderate demand for moderate offerings at $46 to $56.  Boars ranged from $15 to $25 and $5 to $10. 

Pork values closed higher – up $1.32 at $89.52.  Bellies were sharply higher.  Butts, picnics, ribs and loins were higher.  Hams were lower.  Estimated hog slaughter was 470,000 head – up 1,000 on the week and even on the year.  Monday’s hog slaughter has been revised to 457,000 head.