Market News

Cattle futures higher ahead of direct business

At the Chicago Mercantile Exchange, live and feeder cattle were higher, waiting for the week’s direct business to develop.  April lives closed $1.67 higher at $189.92 and June lives closed $2.10 higher at $186.05.  April feeders closed $1.72 higher at $255.85 and May feeders closed $1.90 higher at $258.60. 

Direct cash cattle trade activity was quiet again on Wednesday.  Bids were elusive.  Some early asking prices were reported in the South at $187 live, while dressed bids in parts of Nebraska were floated at $300.  Significant trade volume appears to be holding out until sometime Thursday or Friday.

At the Ozarks Regional Stockyards in Missouri, steer and heifer calves under 650 pounds were $6 to $12 higher with heavier weights steady to $3 higher.  The USDA says demand was good on a light to moderate supply.  Calves under 500 pounds were in very high demand as local buyers were prepping for rapidly greening pastures.  Receipts were down on the week and the year.  Feeder supply included 39% steers and 35% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 460 to 498 pounds brought $347.50 to $381 and feeder steers 601 to 646 pounds brought $285 to $315.  Medium and Large 1 feeder heifers 562 to 590 pounds brought $263 to $290 and feeder heifers 603 to 631 pounds brought $243 to $253. 

Boxed beef closed mixed on light to moderate demand for moderate offerings.  Choice was $.77 lower at $309.82 and Select closed $1.44 higher at $301.04.  The Choice/Select spread is $8.78. Estimated cattle slaughter was 118,000 head – down 6,000 on the week and down a little more than 6,000 on the year. 

Lean hog futures closed mixed, adjusting spreads as long-term demand uncertainties linger.  April lean hogs closed $.47 lower at $84.87 and May lean hogs closed $.35 lower at $91.85. 

Cash hogs closed higher with a solid negotiated run. Packers were aggressive in their procurement efforts as the cash hog market saw back-to-back days of larger runs and higher prices.  Demand for US pork on the global market continues to show some strength, that’s good news for prices.  Domestic demand is also showing some resiliency.  The industry continues to monitor a few things – the inconsistency in pork values, supplies of market-ready hogs, and hog weights, which were up slightly on the week and year-ago levels. Barrows and gilts at the National Daily Direct closed $.92 higher with a base range of $73 to $80 and a weighted average of $78.27; the Iowa/Minnesota closed $.58 higher with a weighted average of $78.42; the Western Corn Belt closed $.97 higher with a weighted average of $78.32.  Prices at the Eastern Corn Belt were not reported due to confidentiality.

Butcher hog prices at the Midwest cash markets are steady at $58. At Illinois, slaughter sow prices were $1 higher with moderate demand for heavy offerings at $49 to $61.  Barrows and gilts were steady with moderate demand for moderate offerings at $43 to $53.  Boars ranged from $15 to $25 and $8 to $15. 

Pork values closed lower – down $.63 at $91.84. Loins, butts, bellies, and picnics were all lower.  Hams and ribs were higher. Estimated hog slaughter was 493,000 head – up 5,000 on the week and up about 13,000 on the year.