Market News

Cattle futures higher ahead of on feed numbers

At the Chicago Mercantile Exchange, live and feeder cattle ended the day higher ahead of the Cattle on Feed numbers with support from lower corn prices and higher boxed beef.  August live cattle closed $.75 higher at $120.80 and October live cattle closed $1.42 higher at $126.67.  August feeder cattle closed $1.42 higher at $158.20 and September feeder cattle closed $1.40 higher at $160.70. 

There was another round of light to moderate direct cash cattle trade that took place on Thursday.   Deals in Nebraska were at $195 to $197 dressed, mostly $3 lower than last week’s weighted average basis. Some of those are marked for delayed delivery for the weeks of August 2^nd and August 15^th.  There was also a handful of live deals reported in Iowa at $125. Live deals in the South were at $119, fully steady with Wednesday’s business. There was a light to moderate trade that took place in the South on Wednesday at mostly $119, about $1 lower than last week’s weighted averages.  There was some scattered business in the North with a wide range from $195 to $200.  A special Fed Cattle Exchange auction took place on Thursday with 2,295 head listed and 304 sold at $118.75. 

At the Mitchell Livestock Auction in South Dakota, compared to last week there was a lower undertone noted on steers up to 800 pounds.  Steers 850 to 900 pounds were $2 higher and there was a higher undertone noted on steers over 900 pounds.  There was a higher undertone on heifers up to 800 pounds, heifers 800 to 950 pounds were unevenly steady, and heifers over 950 pounds saw a higher undertone.  The USDA says demand was good and there were many load lots in the day’s offering.  Receipts were slightly higher on the week and lower on the year and feeder supply included 58% steers with 97% of the offering over 600 pounds.  Medium and Large 1 feeder steers 905 to 914 pounds brought $145.25 to $150.60 and feeder steers 950 to 999 pounds brought $143.25 to $149.50.  Medium and Large 1 feeder heifers 852 to 878 pounds brought $133.50 to $139.75 and feeder heifers 916 to 926 pounds brought $130 to $136.10. 

Boxed beef closed higher on good demand for moderate offerings.  Choice is $.90 higher at $266.14 and Select closed $1 higher at $249.77.  The Choice/Select spread is $16.37.   Estimated cattle slaughter is 118,000 head – down 1,000 on the week and down 2,000 on the year. 

Lean hog futures ended the day mostly lower on profit-taking with pressure from the lower cash and wholesale business.  August lean hogs closed $.07 higher at $106.65 and October lean hogs closed $.67 lower at $91.72. 

Cash hogs closed lower with a moderate negotiated run.  Processors continue to monitor the availability of market-ready barrows and gilts.  The strong demand for US pork on the global market and domestically overall has been very supportive to prices.  The industry doesn’t expect that to change anytime soon. Barrows and gilts at the National Daily Direct closed $1.47 lower with a base range of $103 to $110 and a weighted average of $105.31; the Iowa/Minnesota had a weighted average of $108.16; the Western Corn Belt had a weighted average of $107.91.  Prices at the Eastern Corn Belt were not reported due to confidentiality.   

Butcher hog prices at the Midwest cash markets are steady at $75. At Illinois, slaughter sow prices were $1 higher with good demand for heavy offerings at $60 to $73.  Barrow and gilt prices were steady with moderate to good demand for heavy offerings at $71 to $76.  Boars ranged from $45 to $50 and $10 to $12. 

Pork values closed firm – up $.22 at $122.31.  Hams and loins were both sharply higher.  Picnics were higher. Butts and ribs were sharply lower and bellies were lower.   Estimated hog slaughter 469,000 head – up 8,000 on the week and down 1,000 on the year.